Encompass Health (EHC) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	May 04, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-10315
Entity Registrant Name	Encompass Health Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	63-0860407
Entity Address, Address Line One	9001 Liberty Parkway
Entity Address, City or Town	Birmingham
Entity Address, State or Province	AL
Entity Address, Postal Zip Code	35242
City Area Code	205
Local Phone Number	967-7116
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	EHC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		99,405,112
Entity Central Index Key	0000785161
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement Of Comprehensive Income And Income Statement [Abstract]
Net operating revenues	$ 1,182	$ 1,124
Operating expenses:
Salaries and benefits	679.1	620.8
Other operating expenses	159.6	150.1
Occupancy costs	20.2	19.6
Supplies	45.7	40.1
General and administrative expenses	35.6	53.4
Depreciation and amortization	58.8	52.5
Government, class action, and related settlements	2.8	0
Total operating expenses	1,001.8	936.5
Interest expense and amortization of debt discounts and fees	43.2	37.2
Other expense (income)	1.9	(3.7)
Equity in net income of nonconsolidated affiliates	(0.8)	(2.5)
Income from continuing operations before income tax expense	135.9	156.5
Provision for income tax expense	27.1	30.8
Income from continuing operations	108.8	125.7
Loss from discontinued operations, net of tax	(0.1)	(0.5)
Net income	108.7	125.2
Comprehensive income	108.7	125.2
Less: Net income attributable to noncontrolling interests	(21.7)	(22.9)
Less: Comprehensive income attributable to noncontrolling interests	(21.7)	(22.9)
Net income attributable to Encompass Health	87	102.3
Comprehensive income attributable to Encompass Health	$ 87	$ 102.3
Weighted average common shares outstanding:
Basic (shares)	98.2	98.4
Diluted (shares)	99.6	99.7
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.88	$ 1.05
Discontinued operations (in dollars per share)	0	(0.01)
Net Income (in dollars per share)	0.88	1.04
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	0.87	1.04
Discontinued operations (in dollars per share)	0	(0.01)
Net income (in dollars per share)	$ 0.87	$ 1.03
Amounts attributable to Encompass Health common shareholders:
Income from continuing operations	$ 87.1	$ 102.8
Loss from discontinued operations, net of tax	(0.1)	(0.5)
Net income attributable to Encompass Health	$ 87	$ 102.3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents		$ 104.9	$ 94.8	$ 56.1	$ 69.2
Restricted cash		56.7	57.4	59	59
Accounts receivable		543.4	506.1
Other current assets		79.5	97.5
Total current assets		784.5	755.8
Property and equipment, net		2,003.3	1,959.3
Operating lease right-of-use assets		267.9	276.5
Goodwill		2,312.1	2,305.2
Intangible assets, net		464.7	476.3
Deferred income tax assets		1.5	2.9
Other long-term assets		303.7	304.7
Total assets	[1]	6,137.7	6,080.7
Current liabilities:
Current portion of long-term debt		40.2	39.3
Current operating lease liabilities		40.8	40.4
Accounts payable		98	94.6
Accrued expenses and other current liabilities		407.2	546.7
Total current liabilities		586.2	721
Long-term debt, net of current portion		3,321.9	3,023.3
Long-term operating lease liabilities		235.1	243.8
Other long-term liabilities		163.3	159.9
Total liabilities		4,306.5	4,148
Commitments and contingencies
Redeemable noncontrolling interests		34	239.6
Shareholders’ equity:
Encompass Health shareholders’ equity		1,443.9	1,352.2
Noncontrolling interests		353.3	340.9
Total shareholders’ equity		1,797.2	1,693.1	$ 1,616.5	$ 1,557
Total liabilities and shareholders' equity	[1]	$ 6,137.7	$ 6,080.7
[1]	Our consolidated assets as of March 31, 2020 and December 31, 2019 include total assets of variable interest entities of $222.2 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $39.3 million and $41.1 million , respectively. See Note 2 , Variable Interest Entities .

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Assets	[1]	$ 6,137.7	$ 6,080.7
Liabilities		4,306.5	4,148
VIE
Assets		222.2	215
Liabilities		$ 39.3	$ 41.1
[1]	Our consolidated assets as of March 31, 2020 and December 31, 2019 include total assets of variable interest entities of $222.2 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $39.3 million and $41.1 million , respectively. See Note 2 , Variable Interest Entities .

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Capital in Excess of Par Value	Accumulated Deficit	Treasury Stock	Noncontrolling Interests
Balance at beginning of period at Dec. 31, 2018	$ 1,557	$ 1.1	$ 2,588.7	$ (885.2)	$ (427.9)	$ 280.3
Balance at beginning of period (shares) at Dec. 31, 2018		98.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	121.2			102.3		18.9
Receipt of treasury stock	(15.9)				(15.9)
Receipt of treasury stock (shares)		(0.3)
Dividends declared (per share)	(26.9)		(26.9)
Stock-based compensation	7		7
Distributions declared	(15.3)					(15.3)
Capital contributions from consolidated affiliates	7.1					7.1
Fair value adjustments to redeemable noncontrolling interests, net of tax	(20.3)		(20.3)
Repurchases of common stock in open market	(11)				(11)
Repurchases of common stock in open market (shares)		(0.2)
Other	13.6		2.8		(0.4)	11.2
Other (shares)		0.7
Balance at end of period at Mar. 31, 2019	1,616.5	$ 1.1	2,551.3	(782.9)	(455.2)	302.2
Balance at end of period (shares) at Mar. 31, 2019		99.1
Balance at beginning of period at Dec. 31, 2019	1,693.1	$ 1.1	2,369.9	(526.5)	(492.3)	340.9
Balance at beginning of period (shares) at Dec. 31, 2019		98.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	106.7			87		19.7
Receipt of treasury stock	(15.6)				(15.6)
Receipt of treasury stock (shares)		(0.2)
Dividends declared (per share)	(27.9)		(27.9)
Exchange of Holdings shares	46.3		27.1		19.2
Exchange of Holding Shares (shares)		0.6
Stock-based compensation	7.1		7.1
Distributions declared	(15.5)					(15.5)
Capital contributions from consolidated affiliates	5.8					5.8
Repurchases of common stock in open market	(4.9)				(4.9)
Repurchases of common stock in open market (shares)		(0.1)
Other	2.1				(0.3)	2.4
Other (shares)		0.5
Balance at end of period at Mar. 31, 2020	$ 1,797.2	$ 1.1	$ 2,376.2	$ (439.5)	$ (493.9)	$ 353.3
Balance at end of period (shares) at Mar. 31, 2020		99.4

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared on common stock (in dollars per share)	$ 0.28	$ 0.27

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 108.7	$ 125.2
Loss from discontinued operations, net of tax	0.1	0.5
Adjustments to reconcile net income to net cash provided by operating activities—
Depreciation and amortization	58.8	52.5
Stock-based compensation	7.1	19.4
Deferred tax expense	1.4	2.6
Other, net	7.7	(0.8)
Change in assets and liabilities, net of acquisitions—
Accounts receivable	(36.6)	(29.6)
Other assets	15.8	(3.8)
Accrued payroll	(24)	(14.8)
Other liabilities	(109.6)	11.7
Net cash used in operating activities of discontinued operations	(0.1)	(3)
Total adjustments	(79.5)	34.2
Net cash provided by operating activities	29.3	159.9
Cash flows from investing activities:
Purchases of property and equipment	(83.5)	(72.3)
Acquisitions of businesses, net of cash acquired	(1.1)	(13.7)
Other, net	1.6	(5.5)
Net cash used in investing activities	(83)	(91.5)
Cash flows from financing activities:
Borrowings on revolving credit facility	330	25
Payments on revolving credit facility	(25)	(30)
Dividends paid on common stock	(29)	(28.3)
Purchase of equity interests in consolidated affiliates	(162.3)	0
Distributions paid to noncontrolling interests of consolidated affiliates	(19.1)	(19.5)
Taxes paid on behalf of employees for shares withheld	(15.6)	(15.9)
Other, net	(7.9)	(13)
Net cash provided by (used in) financing activities	71.1	(81.7)
Increase (decrease) in cash, cash equivalents, and restricted cash	17.4	(13.3)
Cash, cash equivalents, and restricted cash at beginning of period	159.6	133.5
Cash, cash equivalents, and restricted cash at end of period	177	120.2
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period	94.8	69.2
Restricted cash at beginning of period	57.4	59
Restricted cash included in other long-term assets at beginning of period	7.4	5.3
Cash, cash equivalents, and restricted cash at beginning of period	159.6	133.5
Cash and cash equivalents at end of period	104.9	56.1
Restricted cash at end of period	56.7	59
Restricted cash included in other long-term assets at end of period	15.4	5.1
Cash, cash equivalents, and restricted cash at end of period	177	120.2
Supplemental schedule of noncash financing activity:
Adoption of ASC 842	$ 0	$ 349.4

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Encompass Health Corporation, incorporated in Delaware in 1984, including its subsidiaries, is one of the nation’s largest providers of post-acute healthcare services, offering both facility-based and home-based patient services in 37 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies, and hospice agencies. We manage our operations and disclose financial information using two reportable segments: (1) inpatient rehabilitation and (2) home health and hospice. See also Note 10 , Segment Reporting . The accompanying unaudited condensed consolidated financial statements of Encompass Health Corporation and Subsidiaries should be read in conjunction with the consolidated financial statements and accompanying notes contained in Encompass Health’s Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on February 27, 2020 (the “ 2019 Form 10‑K ”). The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC applicable to interim financial information. Certain information and note disclosures included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted in these interim statements, as allowed by such SEC rules and regulations. The condensed consolidated balance sheet as of December 31, 2019 has been derived from audited financial statements, but it does not include all disclosures required by GAAP. However, we believe the disclosures are adequate to make the information presented not misleading. The unaudited results of operations for the interim periods shown in these financial statements are not necessarily indicative of operating results for the entire year. In our opinion, the accompanying condensed consolidated financial statements recognize all adjustments of a normal recurring nature considered necessary to fairly state the financial position, results of operations, and cash flows for each interim period presented. Net Operating Revenues — Our Net operating revenues disaggregated by payor source and segment are as follows (in millions): Inpatient Rehabilitation Home Health and Hospice Consolidated Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2020 2019 2020 2019 2020 2019 Medicare $ 641.9 $ 638.9 $ 226.2 $ 214.8 $ 868.1 $ 853.7 Medicare Advantage 111.5 85.2 29.4 25.5 140.9 110.7 Managed care 90.2 83.5 12.1 8.4 102.3 91.9 Medicaid 30.7 26.2 4.2 4.3 34.9 30.5 Other third-party payors 11.0 10.0 — — 11.0 10.0 Workers’ compensation 6.9 8.2 0.3 0.2 7.2 8.4 Patients 5.5 6.1 0.4 0.4 5.9 6.5 Other income 11.5 12.0 0.2 0.3 11.7 12.3 Total $ 909.2 $ 870.1 $ 272.8 $ 253.9 $ 1,182.0 $ 1,124.0 See Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements accompanying the 2019 Form 10-K for our policy related to Net operating revenues . Risks and Uncertainties — The novel coronavirus disease 2019 (“COVID-19”) pandemic has caused a disruption to our nation’s healthcare system. Such disruption includes reductions in the availability of personal protective equipment (“PPE”) to prevent spread of the disease during patient treatment and increases in the cost of PPE. Generally, elective procedures were postponed by physicians and acute-care hospitals in order to prepare for the expected volume of COVID-19 patients and reduce the risk of exposure to COVID-19. I n March, we experienced decreased volumes in both segments which we believe resulted from a number of conditions related to the COVID-19 pandemic including: lower acute-care hospital censuses due to the deferral of elective surgeries and shelter-in-place orders, restrictive visitation policies in place at acute-care hospitals that have served to severely limit access to patients and caregivers by our clinical rehabilitation liaisons and care transition coordinators, lock down of assisted living facilities, and heightened anxiety among patients and their family members regarding the risk of exposure to COVID-19 during acute-care and post-acute care treatment. In March and April 2020, the federal government began to undertake numerous legislative and regulatory initiatives designed to provide relief to the healthcare industry during the COVID-19 pandemic . A specific initiative impacting us is the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”) which temporarily suspends the automatic 2% reduction of Medicare program payments known as “sequestration” for the period of May 1 through December 31, 2020 and authorizes the cash distribution of relief funds from the United States Department of Health and Human Services (“HHS”) to healthcare providers in response to the COVID-19 pandemic. On April 10, 2020, we began to receive the CARES Act relief fund payments, for which we did not apply, from HHS. To date, our inpatient rehabilitation hospitals and home health and hospice agencies have received in aggregate approximately $238 million . On May 7, 2020, we informed HHS we would not accept any of the CARES Act relief funds. We are currently seeking direction on how to process the repayment of those funds. Additionally, the CARES Act and a series of waivers and guidance issued by the Centers for Medicare and Medicaid Services (“CMS”) suspend various Medicare patient coverage criteria and documentation and care requirements in an effort to provide regulatory relief. For inpatient rehabilitation, the regulatory relief includes the temporary suspension of the requirement that patients must be able to tolerate a minimum of 3 hours of therapy per day for 5 days per week, waiver of the requirement that at least 60% of a facility’s patients must have a diagnosis from at least 1 of 13 specified medical conditions that typically require intensive therapy and supervision, and waiver of the requirement for a physician to conduct and document a post-admission evaluation. In addition, the requirement of physician face-to-face visits at least 3 days a week may be fulfilled using telehealth. For home health, the relief includes the allowance of nurse practitioners and physician assistants under certain conditions to certify, establish and periodically review the plan of care, as well as supervise the provision of items and services for beneficiaries under the Medicare home health benefit and expands the use of telehealth. For hospice, the relief includes the temporary waiver of the requirement to use volunteers and to conduct a nurse visit every two weeks to evaluate aides, as well as the expanded use of telehealth for routine services and patient recertification. As discussed in Note 3, Long-term Debt , in April 2020, we amended our credit agreement primarily to provide covenant relief due to business disruptions from the COVID-19 pandemic. The amendment included, among other things, the carve-out of the COVID-19 pandemic from the definition of material adverse effect for 364 days and modifications to the interest coverage and leverage ratios under the agreement. Recently Adopted Accounting Pronouncements — In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which provides guidance for accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new guidance was effective for us beginning January 1, 2020. The adoption of this guidance resulted in an immaterial change to our condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance in determining when the arrangement includes a software license. It requires entities to account for such costs consistent with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The new guidance was effective for us beginning January 1, 2020. The adoption of this guidance did not have a material impact to our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted — In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The standard removes certain exceptions to the general principles of ASC 740 and simplifies other areas such as accounting for outside basis differences of equity method investments. Either prospective or retrospective transition of this standard is dependent upon the specific amendments. The new guidance is effective for us beginning January 1, 2021, including interim periods within that reporting period. Early adoption is permitted. We continue to review the requirements of this standard and any potential impact it may have on our condensed consolidated financial statements. We do not believe any other recently issued, but not yet effective, accounting standards will have a material effect on our condensed consolidated financial position, results of operations, or cash flows.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities As of March 31, 2020 and December 31, 2019 , we consolidated nine and eight , respectively, limited partnership-like entities that are variable interest entities (“VIEs”) and of which we are the primary beneficiary. Our ownership percentages in these entities range from 50.0% to 75.0% as of March 31, 2020 . Through partnership and management agreements with or governing each of these entities, we manage all of these entities and handle all day-to-day operating decisions. Accordingly, we have the decision making power over the activities that most significantly impact the economic performance of our VIEs and an obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. These decisions and significant activities include, but are not limited to, marketing efforts, oversight of patient admissions, medical training, nurse and therapist scheduling, provision of healthcare services, billing, collections, and creation and maintenance of medical records. The terms of the agreements governing each of our VIEs prohibit us from using the assets of each VIE to satisfy the obligations of other entities. The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in our consolidated balance sheet, are as follows (in millions): March 31, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents $ 1.1 $ 0.2 Accounts receivable 31.3 29.3 Other current assets 7.7 6.4 Total current assets 40.1 35.9 Property and equipment, net 120.9 122.6 Operating lease right-of-use assets 5.8 6.0 Goodwill 19.2 15.9 Intangible assets, net 4.8 3.3 Other long-term assets 31.4 31.3 Total assets $ 222.2 $ 215.0 Liabilities Current liabilities: Current portion of long-term debt $ 0.9 $ 0.8 Current operating lease liabilities 1.5 1.4 Accounts payable 5.6 6.7 Accrued expenses and other current liabilities 16.6 17.0 Total current liabilities 24.6 25.9 Long-term debt, net of current portion 10.3 10.5 Long-term operating lease liabilities 4.4 4.7 Total liabilities $ 39.3 $ 41.1

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Our long-term debt outstanding consists of the following (in millions): March 31, 2020 December 31, 2019 Credit Agreement— Advances under revolving credit facility $ 350.0 $ 45.0 Term loan facilities 261.9 265.2 Bonds payable— 5.125% Senior Notes due 2023 297.5 297.3 5.75% Senior Notes due 2024 697.5 697.3 5.75% Senior Notes due 2025 345.8 345.6 4.50% Senior Notes due 2028 491.9 491.7 4.75% Senior Notes due 2030 491.8 491.7 Other notes payable 44.5 44.7 Finance lease obligations 381.2 384.1 3,362.1 3,062.6 Less: Current portion (40.2 ) (39.3 ) Long-term debt, net of current portion $ 3,321.9 $ 3,023.3 Borrowings under our revolving credit facility as of March 31, 2020 were primarily used for the purchase of equity and vested stock appreciation rights from management investors of our home health and hospice segment. For additional information see Note 4, Redeemable Noncontrolling Interests, and Note 6, Share-Based Payments . In April 2020, we amended our existing credit agreement. The following are the changes made to the material provisions of the credit agreement: 1. Amendment of the financial covenants to update the applicable interest coverage ratio and leverage ratio included in that covenant. The revised applicable ratios are set forth below. Fiscal Quarters Ending Interest Coverage Ratio December 31, 2019 and March 31, 2020 3.00 to 1.00 June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 2.00 to 1.00 March 31, 2022 and thereafter 3.00 to 1.00 Fiscal Quarters Ending Leverage Ratio December 31, 2019 and March 31, 2020 4.50 to 1.00 June 30, 2020 4.75 to 1.00 September 30, 2020 5.50 to 1.00 December 31, 2020 6.50 to 1.00 March 31, 2021 6.50 to 1.00 June 30, 2021 6.00 to 1.00 September 30, 2021 5.50 to 1.00 December 31, 2021 5.00 to 1.00 March 31, 2022 and thereafter 4.25 to 1.00 2. Amendment of the definition of “Material Adverse Effect” to carve out the direct and indirect impacts of COVID-19 and the related legislative, regulatory and executive actions on us from that definition for a period of 364 days; and 3. Amendment of the investment limitation covenant and the restricted payment limitation covenant, to add to each a leverage ratio condition (not in excess of 4.50x) to the provisions allowing unlimited investments and restricted payments in the event certain conditions are met including a senior secured leverage ratio (not in excess of 2:00x) and the existence of no events of default in addition to the new leverage ratio condition. All other material terms of the existing credit agreement remain the same and are described in Note 10, Long-term Debt , to the consolidated financial statements accompanying the 2019 Form 10‑K .

Redeemable Noncontrolling Inter

Redeemable Noncontrolling Interests	3 Months Ended
	Mar. 31, 2020
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interests	Redeemable Noncontrolling Interests The following is a summary of the activity related to our Redeemable noncontrolling interests during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 Balance at beginning of period $ 239.6 $ 261.7 Net income attributable to noncontrolling interests 2.0 4.0 Distributions declared (2.1 ) (1.8 ) Contribution to joint venture 3.1 — Reclassification to noncontrolling interests — (11.2 ) Purchase of redeemable noncontrolling interests (162.3 ) — Exchange transaction (46.3 ) — Change in fair value — 20.3 Balance at end of period $ 34.0 $ 273.0 The following table reconciles the net income attributable to nonredeemable Noncontrolling interests , as recorded in the shareholders’ equity section of the condensed consolidated balance sheets, and the net income attributable to Redeemable noncontrolling interests , as recorded in the mezzanine section of the condensed consolidated balance sheets, to the Net and comprehensive income attributable to noncontrolling interests presented in the condensed consolidated statements of comprehensive income for the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 Net income attributable to nonredeemable noncontrolling interests $ 19.7 $ 18.9 Net income attributable to redeemable noncontrolling interests 2.0 4.0 Net income attributable to noncontrolling interests $ 21.7 $ 22.9 On December 31, 2014, we acquired 83.3% of our home health and hospice business when we purchased EHHI Holdings, Inc. (“EHHI”). In the acquisition, we acquired all of the issued and outstanding equity interests of EHHI, other than equity interests contributed to Encompass Health Home Health Holdings, Inc. (“Holdings”), a subsidiary of Encompass Health and an indirect parent of EHHI, by certain sellers in exchange for shares of common stock of Holdings. Those sellers were members of EHHI management, and they contributed a portion of their shares of common stock of EHHI, valued at approximately $64 million on the acquisition date, in exchange for approximately 16.7% of the outstanding shares of common stock of Holdings. At any time after December 31, 2017, each management investor had the right (but not the obligation) to have his or her shares of Holdings stock repurchased by Encompass Health for a cash purchase price per share equal to the fair value. In February 2018, each management investor exercised the right to sell one-third of his or her shares of Holdings stock to Encompass Health, representing approximately 5.6% of the outstanding shares of the common stock of Holdings. On February 21, 2018, Encompass Health settled the acquisition of those shares upon payment of approximately $65 million in cash. In July 2019, we received additional exercise notices, representing approximately 5.6% of the outstanding shares of the common stock of Holdings. In September 2019, Encompass Health settled the acquisition of those shares upon payment of approximately $163 million in cash. In January 2020, we received additional exercise notices, representing approximately 4.3% of the outstanding shares of the common stock of Holdings. On February 18, 2020, Encompass Health settled the acquisition of those shares upon payment of approximately $162 million in cash. Upon settlement of these exercises, approximately $46 million of the shares of Holdings held by two management investors remained outstanding. On February 20, 2020, Encompass Health entered into exchange agreements (each, an “Exchange Agreement”) with these two management investors, pursuant to which they had the right to exchange all of the remaining shares of Holdings held by them for shares of common stock of Encompass Health (the “EHC Shares”). Each of the Exchange Agreements provided that the management investor must deliver a written exchange notice (an “Exchange Notice”) to Encompass Health in order to exchange his or her remaining shares of Holdings for EHC Shares. Each Exchange Agreement further provided that the number of EHC Shares to be delivered to the management investor was to be determined by dividing the fair value of the shares of Holdings held by the management investor on the date of the Exchange Agreement by the last reported sales price of Encompass Health’s common stock on the New York Stock Exchange (the “NYSE”) on the date of delivery of the Exchange Notice. On February 20, 2020, Encompass Health received an Exchange Notice from each of the management investors. Based on the last sales price of Encompass Health’s common stock on the NYSE on February 20, 2020, Encompass Health delivered an aggregate 560,957 EHC Shares to the management investors. The total number of EHC Shares issued pursuant to the exchange agreements on March 6, 2020 represented less than 0.6% of the outstanding shares of Encompass Health common stock. Encompass Health issued the EHC Shares from its treasury shares. Encompass Health now owns 100% of Holdings and EHHI. See also Note 5 , Fair Value Measurements .

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Our financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in millions): Fair Value Measurements at Reporting Date Using As of March 31, 2020 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (1) Other long-term assets: Equity securities $ 61.8 $ — $ 61.8 $ — M Debt securities 9.4 9.4 — — M Redeemable noncontrolling interests 34.0 — — 34.0 I As of December 31, 2019 Other long-term assets: Equity securities $ 63.5 $ — $ 63.5 $ — M Debt securities 12.6 12.6 — — M Redeemable noncontrolling interests 239.6 — — 239.6 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). The decrease in Redeemable noncontrolling interests from December 31, 2019 to March, 31, 2020 primarily resulted from the final purchase of equity interests in Holdings from management investors discussed in Note 4 , Redeemable Noncontrolling Interests . The fair values of our financial assets and liabilities are determined as follows: • Equity and Debt securities - The fair values of our equity and debt securities are determined based on quoted market prices in active markets or quoted prices, dealer quotations, or alternative pricing sources supported by observable inputs in markets that are not considered to be active. • Redeemable noncontrolling interests - The fair value of the Redeemable noncontrolling interests related to our home health segment was determined using the product of a twelve-month adjusted EBITDA measure and a specified median market price multiple based on a basket of public home health companies and transactions, after adding cash and deducting indebtedness that included the outstanding principal balance under any intercompany notes. To determine the fair value of the Redeemable noncontrolling interests in our joint venture hospitals, we use the applicable hospitals’ projected operating results and cash flows discounted using a rate that reflects market participant assumptions for the applicable facilities. The projected operating results use management’s best estimates of economic and market conditions over the forecasted periods including assumptions for pricing and volume, operating expenses, and capital expenditures. In addition, there are assets and liabilities that are not required to be measured at fair value on a recurring basis. However, these assets may be recorded at fair value as a result of impairment charges or other adjustments made to the carrying value of the applicable assets. During the three months ended March 31, 2020 and March 31, 2019 , we did not record any material gains or losses related to these assets. As discussed in Note 1, Summary of Significant Accounting Policies , “Fair Value Measurements,” to the consolidated financial statements accompanying the 2019 Form 10‑K , the carrying value equals fair value for our financial instruments that are not included in the table below and are classified as current in our condensed consolidated balance sheets. The carrying amounts and estimated fair values for all of our other financial instruments are presented in the following table (in millions): As of March 31, 2020 As of December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ 350.0 $ 350.0 $ 45.0 $ 45.0 Term loan facilities 261.9 263.3 265.2 266.6 5.125% Senior Notes due 2023 297.5 298.5 297.3 306.6 5.75% Senior Notes due 2024 697.5 703.5 697.3 708.8 5.75% Senior Notes due 2025 345.8 344.3 345.6 369.7 4.50% Senior Notes due 2028 491.9 491.3 491.7 519.4 4.75% Senior Notes due 2030 491.8 496.1 491.7 520.0 Other notes payable 44.5 44.5 44.7 44.7 Financial commitments: Letters of credit — 36.7 — 38.9 Fair values for our long-term debt and financial commitments are determined using inputs, including quoted prices in nonactive markets, that are observable either directly or indirectly, or Level 2 inputs within the fair value hierarchy. See Note 1, Summary of Significant Accounting Policies , “Fair Value Measurements,” to the consolidated financial statements accompanying the 2019 Form 10‑K .

Share-Based Payments

Share-Based Payments	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Share-Based Payments	Share-Based Payments In the first quarter of 2020 , we issued a total of 0.4 million restricted stock awards to members of our management team and our board of directors. Approximately 0.2 million of these awards contain only a service condition, while the remainder contain both a service and a performance condition. For the awards that include a performance condition, the number of shares that will ultimately be granted to employees may vary based on the Company’s performance during the applicable two year performance measurement period. Additionally, we granted 0.1 million stock options to members of our management team. The fair value of these awards and options was determined using the policies described in Note 1, Summary of Significant Accounting Policies , and Note 14, Share-Based Payments , to the consolidated financial statements accompanying the 2019 Form 10‑K . In conjunction with the EHHI acquisition discussed in Note 4 , Redeemable Noncontrolling Interests , we granted stock appreciation rights (“SARs”) based on Holdings common stock to certain members of EHHI management at closing. Half of the SARs vested on December 31, 2018 and the remainder vested on December 31, 2019. Upon exercise, each SAR must be settled for cash in the amount by which the per share fair value of Holdings’ common stock on the exercise date exceeds the per share fair value on the grant date. As of December 31, 2019, the fair value of the remaining 115,545 SARs was approximately $101 million , all of which was included in Accrued expenses and other current liabilities in the condensed consolidated balance sheet. In January 2020, members of the management team exercised the remaining SARs, and in February 2020, we settled those awards upon payment of approximately $101 million in cash. For additional information, see Note 14, Share-Based Payments , to the consolidated financial statements accompanying the 2019 Form 10‑K

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our Provision for income tax expense of $27.1 million and $30.8 million for the three months ended March 31, 2020 and March 31, 2019

Earnings per Common Share

Earnings per Common Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Earnings per Common Share	Earnings per Common Share The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts): Three Months Ended March 31, 2020 2019 Basic: Numerator: Income from continuing operations $ 108.8 $ 125.7 Less: Net income attributable to noncontrolling interests included in continuing operations (21.7 ) (22.9 ) Less: Income allocated to participating securities (0.3 ) (0.4 ) Income from continuing operations attributable to Encompass Health common shareholders 86.8 102.4 Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders (0.1 ) (0.5 ) Net income attributable to Encompass Health common shareholders $ 86.7 $ 101.9 Denominator: Basic weighted average common shares outstanding 98.2 98.4 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.88 $ 1.05 Discontinued operations — (0.01 ) Net income $ 0.88 $ 1.04 Diluted: Numerator: Income from continuing operations $ 108.8 $ 125.7 Less: Net income attributable to noncontrolling interests included in continuing operations (21.7 ) (22.9 ) Income from continuing operations attributable to Encompass Health common shareholders 87.1 102.8 Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders (0.1 ) (0.5 ) Net income attributable to Encompass Health common shareholders $ 87.0 $ 102.3 Denominator: Diluted weighted average common shares outstanding 99.6 99.7 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.87 $ 1.04 Discontinued operations — (0.01 ) Net income $ 0.87 $ 1.03 The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions): Three Months Ended March 31, 2020 2019 Basic weighted average common shares outstanding 98.2 98.4 Restricted stock awards, dilutive stock options, and restricted stock units 1.4 1.3 Diluted weighted average common shares outstanding 99.6 99.7 See Note 17, Earnings per Common Share , to the consolidated financial statements accompanying the 2019 Form 10‑K

Contingencies and Other Commitm

Contingencies and Other Commitments	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Other Commitments	Contingencies and Other Commitments We operate in a highly regulated industry in which healthcare providers are routinely subject to litigation. As a result, various lawsuits, claims, and legal and regulatory proceedings have been and can be expected to be instituted or asserted against us. The resolution of any such lawsuits, claims, or legal and regulatory proceedings could materially and adversely affect our financial position, results of operations, and cash flows in a given period. Nichols Litigation— We were named as a defendant in a lawsuit filed March 28, 2003 by several individual stockholders in the Circuit Court of Jefferson County, Alabama, captioned Nichols v. HealthSouth Corp . In July 2019, we entered into settlement agreements with all but one plaintiff and paid those settling plaintiffs an aggregate amount of cash less than $0.1 million . The remaining plaintiff alleges that we, some of our former officers, and our former investment bank engaged in a scheme to overstate and misrepresent our earnings and financial position. The plaintiff is seeking compensatory and punitive damages. This case was stayed in the circuit court on August 8, 2005. However, the complaint has been amended from time to time, including to request certification as a class action. Additionally, one of the former officers named as a defendant has repeatedly attempted to remove the case to federal district court. We filed our latest motion to remand the case back to state court on January 10, 2013. On September 27, 2013, the federal court remanded the case back to state court. On December 10, 2014, we filed a motion to dismiss on the grounds the plaintiffs lacked standing because their claims were derivative in nature, and the claims were time-barred by the statute of limitations. On May 26, 2016, the trial court granted our motion to dismiss. On appeal, the Supreme Court of Alabama reversed the trial court’s dismissal on March 23, 2018. On April 6, 2018, we filed an application for rehearing with the Alabama Supreme Court. On March 22, 2019, the Alabama Supreme Court denied our application for rehearing and remanded the case to the trial court for further proceedings. The trial court recently vacated its original scheduling order, so we do not currently know when this trial will begin. We intend to vigorously defend ourselves in this case against the sole remaining plaintiff. Based on the stage of litigation, review of the current facts and circumstances as we understand them, the nature of the underlying claim, the results of the proceedings to date, and the nature and scope of the defense we continue to mount, we do not believe an adverse judgment or settlement is probable in this matter, and it is also not possible to estimate an amount of loss, if any, or range of possible loss that might result from an adverse judgment or settlement of this case. Other Matters— The False Claims Act allows private citizens, called “relators,” to institute civil proceedings on behalf of the United States alleging violations of the False Claims Act. These lawsuits, also known as “whistleblower” or “ qui tam ” actions, can involve significant monetary damages, fines, attorneys’ fees and the award of bounties to the relators who successfully prosecute or bring these suits to the government. Qui tam cases are sealed at the time of filing, which means knowledge of the information contained in the complaint typically is limited to the relator, the federal government, and the presiding court. The defendant in a qui tam action may remain unaware of the existence of a sealed complaint for years. While the complaint is under seal, the government reviews the merits of the case and may conduct a broad investigation and seek discovery from the defendant and other parties before deciding whether to intervene in the case and take the lead on litigating the claims. The court lifts the seal when the government makes its decision on whether to intervene. If the government decides not to intervene, the relator may elect to continue to pursue the lawsuit individually on behalf of the government. It is possible that qui tam lawsuits have been filed against us, which suits remain under seal, or that we are unaware of such filings or precluded by existing law or court order from discussing or disclosing the filing of such suits. We may be subject to liability under one or more undisclosed qui tam cases brought pursuant to the False Claims Act. It is our obligation as a participant in Medicare and other federal healthcare programs to routinely conduct audits and reviews of the accuracy of our billing systems and other regulatory compliance matters. As a result of these reviews, we have made, and will continue to make, disclosures to the United States Department of Health and Human Services Office of Inspector General and CMS relating to amounts we suspect represent over-payments from these programs, whether due to inaccurate billing or otherwise. Some of these disclosures have resulted in, or may result in, Encompass Health refunding amounts to Medicare or other federal healthcare programs.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting Our internal financial reporting and management structure is focused on the major types of services provided by Encompass Health. We manage our operations using two operating segments which are also our reportable segments: (1) inpatient rehabilitation and (2) home health and hospice. These reportable operating segments are consistent with information used by our chief executive officer, who is our chief operating decision maker, to assess performance and allocate resources. The following is a brief description of our reportable segments: • Inpatient Rehabilitation - Our national network of inpatient rehabilitation hospitals stretches across 33 states and Puerto Rico, with a concentration of hospitals in the eastern half of the United States and Texas. As of March 31, 2020 , we operate 134 inpatient rehabilitation hospitals. We are the sole owner of 87 of these hospitals. We retain 50.0% to 97.5% ownership in the remaining 47 jointly owned hospitals. In addition, we manage three inpatient rehabilitation units through management contracts. We provide specialized rehabilitative treatment on both an inpatient and outpatient basis. Our inpatient rehabilitation hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. • Home Health and Hospice - As of March 31, 2020 , we provide home health services in 245 locations and hospice services in 83 locations across 31 states with concentrations in the Southeast and Texas. In addition, one of these home health agencies operates as a joint venture which we account for using the equity method of accounting. We are the sole owner of 320 of these locations. We retain 50.0% to 81.0% ownership in the remaining eight jointly owned locations. Our home health services include a comprehensive range of Medicare-certified home nursing services to adult patients in need of care. These services include, among others, skilled nursing, physical, occupational, and speech therapy, medical social work, and home health aide services. Our hospice services include in-home services to terminally ill patients and their families to address patients’ physical needs, including pain control and symptom management, and to provide emotional and spiritual support. The accounting policies of our reportable segments are the same as those described in Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements accompanying the 2019 Form 10‑K . All revenues for our services are generated through external customers. See Note 1 , Basis of Presentation , “Net Operating Revenues,” for the disaggregation of our revenues. No corporate overhead is allocated to either of our reportable segments. Our chief operating decision maker evaluates the performance of our segments and allocates resources to them based on adjusted earnings before interest, taxes, depreciation, and amortization (“Segment Adjusted EBITDA”). Selected financial information for our reportable segments is as follows (in millions): Inpatient Rehabilitation Home Health and Hospice Three Months Ended March 31, Three Months Ended March 31, 2020 2019 2020 2019 Net operating revenues $ 909.2 $ 870.1 $ 272.8 $ 253.9 Operating expenses: Inpatient rehabilitation: Salaries and benefits 482.3 445.0 — — Other operating expenses 134.7 127.6 — — Supplies 39.6 35.6 — — Occupancy costs 15.3 15.8 — — Home health and hospice: Cost of services sold (excluding depreciation and amortization) — — 130.9 116.5 Support and overhead costs — — 100.2 88.8 671.9 624.0 231.1 205.3 Other expense (income) 1.6 (2.8 ) — — Equity in net income of nonconsolidated affiliates (0.6 ) (2.1 ) (0.2 ) (0.4 ) Noncontrolling interests 20.8 21.0 0.9 2.7 Segment Adjusted EBITDA $ 215.5 $ 230.0 $ 41.0 $ 46.3 Capital expenditures $ 83.3 $ 70.4 $ 1.5 $ 4.5 Inpatient Rehabilitation Home Health and Hospice Encompass Health Consolidated As of March 31, 2020 Total assets $ 4,558.8 $ 1,639.2 $ 6,137.7 Investments in and advances to nonconsolidated affiliates 1.8 3.9 5.7 As of December 31, 2019 Total assets $ 4,501.4 $ 1,612.8 $ 6,080.7 Investments in and advances to nonconsolidated affiliates 2.0 5.4 7.4 Segment reconciliations (in millions): Three Months Ended March 31, 2020 2019 Total Segment Adjusted EBITDA $ 256.5 $ 276.3 General and administrative expenses (35.6 ) (53.4 ) Depreciation and amortization (58.8 ) (52.5 ) Loss on disposal of assets (0.1 ) (1.1 ) Government, class action, and related settlements (2.8 ) — Interest expense and amortization of debt discounts and fees (43.2 ) (37.2 ) Net income attributable to noncontrolling interests 21.7 22.9 SARs mark-to-market impact on noncontrolling interests — 0.8 Change in fair market value of equity securities (2.5 ) 0.9 Gain on consolidation of Treasure Coast 2.2 — Payroll taxes on SARs exercise (1.5 ) (0.2 ) Income from continuing operations before income tax expense $ 135.9 $ 156.5 March 31, 2020 December 31, 2019 Total assets for reportable segments $ 6,198.0 $ 6,114.2 Reclassification of deferred income tax liabilities to net deferred income tax assets (60.3 ) (33.5 ) Total consolidated assets $ 6,137.7 $ 6,080.7 Additional detail regarding the revenues of our operating segments by service line follows (in millions): Three Months Ended March 31, 2020 2019 Inpatient rehabilitation: Inpatient $ 890.0 $ 847.6 Outpatient and other 19.2 22.5 Total inpatient rehabilitation 909.2 870.1 Home health and hospice: Home health 224.8 219.5 Hospice 48.0 34.4 Total home health and hospice 272.8 253.9 Total net operating revenues $ 1,182.0 $ 1,124.0

Condensed Consolidating Financi

Condensed Consolidating Financial Information	3 Months Ended
	Mar. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Condensed Consolidating Financial Information	Condensed Consolidating Financial Information The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” Each of the subsidiary guarantors is 100% owned by Encompass Health. Those subsidiary guarantors guarantee the indebtedness under our credit agreement and our senior unsecured notes, and all guarantees are full and unconditional and joint and several, subject to certain customary conditions for release. Encompass Health’s investments in its consolidated subsidiaries, as well as guarantor subsidiaries’ investments in nonguarantor subsidiaries and nonguarantor subsidiaries’ investments in guarantor subsidiaries, are presented under the equity method of accounting with the related investment presented within the line items Intercompany receivable and investments in consolidated affiliates and Intercompany payable in the accompanying condensed consolidating balance sheets. The terms of our credit agreement allow us to declare and pay cash dividends on our common stock so long as: (1) we are not in default under our credit agreement, (2) our senior secured leverage ratio (as defined in our credit agreement) remains less than or equal to 2 x, and (3) our leverage ratio (as defined in our credit agreement) remains less than or equal to 4.5x. The terms of our senior note indenture allow us to declare and pay cash dividends on our common stock so long as (1) we are not in default, (2) the consolidated coverage ratio (as defined in the indenture) exceeds 2 x or we are otherwise allowed under the indenture to incur debt, and (3) we have capacity under the indenture’s restricted payments covenant to declare and pay dividends. See Note 10, Long-term Debt , to the consolidated financial statements accompanying the 2019 Form 10‑K . Periodically, certain wholly owned subsidiaries of Encompass Health make dividends or distributions of available cash and/or intercompany receivable balances to their parents. In addition, Encompass Health makes contributions to certain wholly owned subsidiaries. When made, these dividends, distributions, and contributions impact the Intercompany receivable and investments in consolidated affiliates , Intercompany payable , and Encompass Health shareholders’ equity line items in the accompanying condensed consolidating balance sheet but have no impact on the consolidated financial statements of Encompass Health Corporation. Three Months Ended March 31, 2020 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net operating revenues $ 4.6 $ 622.5 $ 323.3 $ 266.8 $ (35.2 ) $ 1,182.0 Operating expenses: Salaries and benefits 16.7 309.8 164.2 193.3 (4.9 ) 679.1 Other operating expenses 9.6 86.9 52.0 24.1 (13.0 ) 159.6 Occupancy costs 0.6 25.4 6.7 4.8 (17.3 ) 20.2 Supplies — 26.5 13.2 6.0 — 45.7 General and administrative expenses 34.7 — — 0.9 — 35.6 Depreciation and amortization 5.3 28.7 15.0 9.8 — 58.8 Government, class action, and related settlements 2.8 — — — — 2.8 Total operating expenses 69.7 477.3 251.1 238.9 (35.2 ) 1,001.8 Interest expense and amortization of debt discounts and fees 35.8 6.3 1.4 4.9 (5.2 ) 43.2 Other (income) expense (2.3 ) (0.4 ) 1.6 (2.2 ) 5.2 1.9 Equity in net income of nonconsolidated affiliates — (0.5 ) (0.1 ) (0.2 ) — (0.8 ) Equity in net income of consolidated affiliates (122.2 ) (17.8 ) — — 140.0 — Management fees (42.0 ) 30.2 11.8 — — — Income from continuing operations before income tax (benefit) expense 65.6 127.4 57.5 25.4 (140.0 ) 135.9 Provision for income tax (benefit) expense (21.5 ) 33.0 9.1 6.5 — 27.1 Income from continuing operations 87.1 94.4 48.4 18.9 (140.0 ) 108.8 Loss from discontinued operations, net of tax (0.1 ) — — — — (0.1 ) Net and comprehensive income 87.0 94.4 48.4 18.9 (140.0 ) 108.7 Less: Net and comprehensive income attributable to noncontrolling interests — — (21.2 ) (0.5 ) — (21.7 ) Net and comprehensive income attributable to Encompass Health $ 87.0 $ 94.4 $ 27.2 $ 18.4 $ (140.0 ) $ 87.0 Three Months Ended March 31, 2019 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net operating revenues $ 5.1 $ 606.5 $ 296.5 $ 249.5 $ (33.6 ) $ 1,124.0 Operating expenses: Salaries and benefits 15.9 288.9 148.0 173.1 (5.1 ) 620.8 Other operating expenses 10.3 84.7 46.8 20.8 (12.5 ) 150.1 Occupancy costs 0.5 24.9 6.5 3.7 (16.0 ) 19.6 Supplies — 24.0 11.6 4.5 — 40.1 General and administrative expenses 39.9 — — 13.5 — 53.4 Depreciation and amortization 5.0 26.3 13.1 8.1 — 52.5 Total operating expenses 71.6 448.8 226.0 223.7 (33.6 ) 936.5 Interest expense and amortization of debt discounts and fees 30.1 6.2 1.3 6.4 (6.8 ) 37.2 Other income (7.7 ) (0.3 ) (2.5 ) — 6.8 (3.7 ) Equity in net income of nonconsolidated affiliates — (2.0 ) (0.1 ) (0.4 ) — (2.5 ) Equity in net income of consolidated affiliates (130.2 ) (17.1 ) — — 147.3 — Management fees (39.8 ) 29.5 10.3 — — — Income from continuing operations before income tax (benefit) expense 81.1 141.4 61.5 19.8 (147.3 ) 156.5 Provision for income tax (benefit) expense (21.7 ) 37.8 10.2 4.5 — 30.8 Income from continuing operations 102.8 103.6 51.3 15.3 (147.3 ) 125.7 Loss from discontinued operations, net of tax (0.5 ) — — — — (0.5 ) Net and comprehensive income 102.3 103.6 51.3 15.3 (147.3 ) 125.2 Less: Net and comprehensive income attributable to noncontrolling interests — — (21.2 ) (1.7 ) — (22.9 ) Net and comprehensive income attributable to Encompass Health $ 102.3 $ 103.6 $ 30.1 $ 13.6 $ (147.3 ) $ 102.3 As of March 31, 2020 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Assets Current assets: Cash and cash equivalents $ 79.0 $ 3.7 $ 7.8 $ 14.4 $ — $ 104.9 Restricted cash — — 56.7 — — 56.7 Accounts receivable — 270.8 131.6 141.0 — 543.4 Other current assets 79.8 34.7 45.1 7.2 (87.3 ) 79.5 Total current assets 158.8 309.2 241.2 162.6 (87.3 ) 784.5 Property and equipment, net 138.5 1,268.0 567.4 29.4 — 2,003.3 Operating lease right-of-use assets 9.7 158.0 80.1 43.2 (23.1 ) 267.9 Goodwill — 912.2 329.0 1,070.9 — 2,312.1 Intangible assets, net 15.8 98.9 64.8 285.2 — 464.7 Deferred income tax assets 52.6 11.1 0.1 — (62.3 ) 1.5 Other long-term assets 51.7 86.8 152.9 12.3 — 303.7 Intercompany receivable and investments in consolidated affiliates 4,245.7 657.6 — 7.5 (4,910.8 ) — Total assets $ 4,672.8 $ 3,501.8 $ 1,435.5 $ 1,611.1 $ (5,083.5 ) $ 6,137.7 Liabilities and Shareholders’ Equity Current liabilities: Current portion of long-term debt $ 17.0 $ 10.8 $ 3.9 $ 8.5 $ — $ 40.2 Current operating lease liabilities 1.4 19.2 14.2 13.6 (7.6 ) 40.8 Accounts payable 12.5 57.2 25.0 3.3 — 98.0 Accrued expenses and other current liabilities 171.5 110.4 134.0 78.6 (87.3 ) 407.2 Total current liabilities 202.4 197.6 177.1 104.0 (94.9 ) 586.2 Long-term debt, net of current portion 2,973.0 302.5 40.6 5.8 — 3,321.9 Long-term operating lease liabilities 8.6 143.5 69.1 29.6 (15.7 ) 235.1 Other long-term liabilities 44.9 12.0 105.0 63.6 (62.2 ) 163.3 Intercompany payable — — 66.0 — (66.0 ) — 3,228.9 655.6 457.8 203.0 (238.8 ) 4,306.5 Commitments and contingencies Redeemable noncontrolling interests — — 34.0 — — 34.0 Shareholders’ equity: Encompass Health shareholders’ equity 1,443.9 2,846.2 590.4 1,408.1 (4,844.7 ) 1,443.9 Noncontrolling interests — — 353.3 — — 353.3 Total shareholders’ equity 1,443.9 2,846.2 943.7 1,408.1 (4,844.7 ) 1,797.2 Total liabilities and shareholders’ equity $ 4,672.8 $ 3,501.8 $ 1,435.5 $ 1,611.1 $ (5,083.5 ) $ 6,137.7 As of December 31, 2019 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Assets Current assets: Cash and cash equivalents $ 53.7 $ 5.2 $ 6.0 $ 29.9 $ — $ 94.8 Restricted cash — — 57.4 — — 57.4 Accounts receivable — 280.4 125.6 100.1 — 506.1 Other current assets 64.3 35.4 9.3 7.8 (19.3 ) 97.5 Total current assets 118.0 321.0 198.3 137.8 (19.3 ) 755.8 Property and equipment, net 133.4 1,246.0 551.2 28.7 — 1,959.3 Operating lease right-of-use assets 10.1 171.5 86.5 43.7 (35.3 ) 276.5 Goodwill — 912.2 323.0 1,070.0 — 2,305.2 Intangible assets, net 17.7 101.7 65.3 291.6 — 476.3 Deferred income tax assets 27.2 11.1 0.1 — (35.5 ) 2.9 Other long-term assets 53.6 85.4 151.6 14.1 — 304.7 Intercompany notes receivable 737.8 — — — (737.8 ) — Intercompany receivable and investments in consolidated affiliates 3,155.4 523.6 — — (3,679.0 ) — Total assets $ 4,253.2 $ 3,372.5 $ 1,376.0 $ 1,585.9 $ (4,506.9 ) $ 6,080.7 Liabilities and Shareholders’ Equity Current liabilities: Current portion of long-term debt $ 17.0 $ 10.4 $ 3.8 $ 8.1 $ — $ 39.3 Current operating lease liabilities 1.3 21.9 16.0 12.1 (10.9 ) 40.4 Accounts payable 9.8 56.5 24.3 4.0 — 94.6 Accrued expenses and other current liabilities 147.4 108.7 109.2 200.7 (19.3 ) 546.7 Total current liabilities 175.5 197.5 153.3 224.9 (30.2 ) 721.0 Long-term debt, net of current portion 2,670.6 305.4 41.6 5.7 — 3,023.3 Long-term operating lease liabilities 9.0 153.9 73.6 31.9 (24.6 ) 243.8 Intercompany notes payable — — — 737.8 (737.8 ) — Other long-term liabilities 45.9 12.2 100.3 37.0 (35.5 ) 159.9 Intercompany payable — — 66.0 4.4 (70.4 ) — 2,901.0 669.0 434.8 1,041.7 (898.5 ) 4,148.0 Commitments and contingencies Redeemable noncontrolling interests — — 31.4 208.2 — 239.6 Shareholders’ equity: Encompass Health shareholders’ equity 1,352.2 2,703.5 568.9 336.0 (3,608.4 ) 1,352.2 Noncontrolling interests — — 340.9 — — 340.9 Total shareholders’ equity 1,352.2 2,703.5 909.8 336.0 (3,608.4 ) 1,693.1 Total liabilities and shareholders’ equity $ 4,253.2 $ 3,372.5 $ 1,376.0 $ 1,585.9 $ (4,506.9 ) $ 6,080.7 Three Months Ended March 31, 2020 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net cash (used in) provided by operating activities $ (31.2 ) $ 117.7 $ 56.8 $ (114.0 ) $ — $ 29.3 Cash flows from investing activities: Purchases of property and equipment (9.3 ) (49.5 ) (23.4 ) (1.3 ) — (83.5 ) Acquisitions of businesses, net of cash acquired — — — (1.1 ) — (1.1 ) Funding of intercompany note receivable (15.0 ) — — — 15.0 — Other, net (2.8 ) 0.7 3.9 (0.2 ) — 1.6 Net cash used in investing activities (27.1 ) (48.8 ) (19.5 ) (2.6 ) 15.0 (83.0 ) Cash flows from financing activities: Principal borrowings on intercompany note payable — — — 15.0 (15.0 ) — Borrowings on revolving credit facility 330.0 — — — — 330.0 Payments on revolving credit facility (25.0 ) — — — — (25.0 ) Dividends paid on common stock (28.9 ) — — (0.1 ) — (29.0 ) Purchase of equity interests in consolidated affiliates (162.3 ) — — — — (162.3 ) Distributions paid to noncontrolling interests of consolidated affiliates — — (19.1 ) — — (19.1 ) Taxes paid on behalf of employees for shares withheld (14.6 ) — — (1.0 ) — (15.6 ) Other, net (8.5 ) (2.5 ) 5.0 (1.9 ) — (7.9 ) Change in intercompany advances (7.1 ) (67.9 ) (14.1 ) 89.1 — — Net cash provided by (used in) financing activities 83.6 (70.4 ) (28.2 ) 101.1 (15.0 ) 71.1 Increase (decrease) in cash, cash equivalents, and restricted cash 25.3 (1.5 ) 9.1 (15.5 ) — 17.4 Cash, cash equivalents, and restricted cash at beginning of period 53.7 5.2 70.8 29.9 — 159.6 Cash, cash equivalents, and restricted cash at end of period $ 79.0 $ 3.7 $ 79.9 $ 14.4 $ — $ 177.0 Reconciliation of Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents at beginning of period $ 53.7 $ 5.2 $ 6.0 $ 29.9 $ — $ 94.8 Restricted cash at beginning of period — — 57.4 — — 57.4 Restricted cash included in other long term assets at beginning of period — — 7.4 — — 7.4 Cash, cash equivalents, and restricted cash at beginning of period $ 53.7 $ 5.2 $ 70.8 $ 29.9 $ — $ 159.6 Cash and cash equivalents at end of period $ 79.0 $ 3.7 $ 7.8 $ 14.4 $ — $ 104.9 Restricted cash at end of period — — 56.7 — — 56.7 Restricted cash included in other long-term assets at end of period — — 15.4 — — 15.4 Cash, cash equivalents, and restricted cash at end of period $ 79.0 $ 3.7 $ 79.9 $ 14.4 $ — $ 177.0 Supplemental schedule of noncash financing activity: Capital contribution of intercompany note $ 853.0 $ — $ — (853.0 ) $ — $ — Three Months Ended March 31, 2019 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net cash provided by operating activities $ 18.6 $ 89.6 $ 42.4 $ 9.3 $ — $ 159.9 Cash flows from investing activities: Purchases of property and equipment (6.8 ) (32.5 ) (29.4 ) (3.6 ) — (72.3 ) Acquisitions of businesses, net of cash acquired — — — (13.7 ) — (13.7 ) Funding of intercompany note receivable (8.0 ) — — — 8.0 — Proceeds from repayment of intercompany note receivable 5.0 — — — (5.0 ) — Other, net (4.0 ) (0.1 ) (0.7 ) (0.7 ) — (5.5 ) Net cash used in investing activities (13.8 ) (32.6 ) (30.1 ) (18.0 ) 3.0 (91.5 ) Cash flows from financing activities: Principal borrowings on intercompany note payable — — — 8.0 (8.0 ) — Principal payments on intercompany note payable — — — (5.0 ) 5.0 — Borrowings on revolving credit facility 25.0 — — — — 25.0 Payments on revolving credit facility (30.0 ) — — — — (30.0 ) Dividends paid on common stock (28.2 ) — (0.1 ) — (28.3 ) Distributions paid to noncontrolling interests of consolidated affiliates — — (19.5 ) — — (19.5 ) Taxes paid on behalf of employees for shares withheld (14.7 ) — — (1.2 ) — (15.9 ) Other, net (14.7 ) (2.1 ) 5.6 (1.8 ) — (13.0 ) Change in intercompany advances 51.0 (54.4 ) 2.1 1.3 — — Net cash used in financing activities (11.6 ) (56.5 ) (11.8 ) 1.2 (3.0 ) (81.7 ) (Decrease) increase in cash, cash equivalents, and restricted cash (6.8 ) 0.5 0.5 (7.5 ) — (13.3 ) Cash, cash equivalents, and restricted cash at beginning of period 41.5 3.0 69.4 19.6 — 133.5 Cash, cash equivalents, and restricted cash at end of period $ 34.7 $ 3.5 $ 69.9 $ 12.1 $ — $ 120.2 Reconciliation of Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents at beginning of period $ 41.5 $ 3.0 $ 5.1 $ 19.6 $ — $ 69.2 Restricted cash at beginning of period — — 59.0 — — 59.0 Long term restricted cash at beginning of period — — 5.3 — — 5.3 Cash, cash equivalents, and restricted cash at beginning of period $ 41.5 $ 3.0 $ 69.4 $ 19.6 $ — $ 133.5 Cash and cash equivalents at end of period $ 34.7 $ 3.5 $ 5.8 $ 12.1 $ — $ 56.1 Restricted cash at end of period — — 59.0 — — 59.0 Long term restricted cash at end of period — — 5.1 — — 5.1 Cash, cash equivalents, and restricted cash at end of period $ 34.7 $ 3.5 $ 69.9 $ 12.1 $ — $ 120.2

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements — In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which provides guidance for accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new guidance was effective for us beginning January 1, 2020. The adoption of this guidance resulted in an immaterial change to our condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement), by providing guidance in determining when the arrangement includes a software license. It requires entities to account for such costs consistent with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The new guidance was effective for us beginning January 1, 2020. The adoption of this guidance did not have a material impact to our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted — In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The standard removes certain exceptions to the general principles of ASC 740 and simplifies other areas such as accounting for outside basis differences of equity method investments. Either prospective or retrospective transition of this standard is dependent upon the specific amendments. The new guidance is effective for us beginning January 1, 2021, including interim periods within that reporting period. Early adoption is permitted. We continue to review the requirements of this standard and any potential impact it may have on our condensed consolidated financial statements. We do not believe any other recently issued, but not yet effective, accounting standards will have a material effect on our condensed consolidated financial position, results of operations, or cash flows.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Concentration of Net Operating Revenues by Payor	Our Net operating revenues disaggregated by payor source and segment are as follows (in millions): Inpatient Rehabilitation Home Health and Hospice Consolidated Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2020 2019 2020 2019 2020 2019 Medicare $ 641.9 $ 638.9 $ 226.2 $ 214.8 $ 868.1 $ 853.7 Medicare Advantage 111.5 85.2 29.4 25.5 140.9 110.7 Managed care 90.2 83.5 12.1 8.4 102.3 91.9 Medicaid 30.7 26.2 4.2 4.3 34.9 30.5 Other third-party payors 11.0 10.0 — — 11.0 10.0 Workers’ compensation 6.9 8.2 0.3 0.2 7.2 8.4 Patients 5.5 6.1 0.4 0.4 5.9 6.5 Other income 11.5 12.0 0.2 0.3 11.7 12.3 Total $ 909.2 $ 870.1 $ 272.8 $ 253.9 $ 1,182.0 $ 1,124.0

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Carrying Amounts and Classifications of VIE's Assets and Liabilities	The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in our consolidated balance sheet, are as follows (in millions): March 31, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents $ 1.1 $ 0.2 Accounts receivable 31.3 29.3 Other current assets 7.7 6.4 Total current assets 40.1 35.9 Property and equipment, net 120.9 122.6 Operating lease right-of-use assets 5.8 6.0 Goodwill 19.2 15.9 Intangible assets, net 4.8 3.3 Other long-term assets 31.4 31.3 Total assets $ 222.2 $ 215.0 Liabilities Current liabilities: Current portion of long-term debt $ 0.9 $ 0.8 Current operating lease liabilities 1.5 1.4 Accounts payable 5.6 6.7 Accrued expenses and other current liabilities 16.6 17.0 Total current liabilities 24.6 25.9 Long-term debt, net of current portion 10.3 10.5 Long-term operating lease liabilities 4.4 4.7 Total liabilities $ 39.3 $ 41.1

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of Outstanding Long-term Debt	Our long-term debt outstanding consists of the following (in millions): March 31, 2020 December 31, 2019 Credit Agreement— Advances under revolving credit facility $ 350.0 $ 45.0 Term loan facilities 261.9 265.2 Bonds payable— 5.125% Senior Notes due 2023 297.5 297.3 5.75% Senior Notes due 2024 697.5 697.3 5.75% Senior Notes due 2025 345.8 345.6 4.50% Senior Notes due 2028 491.9 491.7 4.75% Senior Notes due 2030 491.8 491.7 Other notes payable 44.5 44.7 Finance lease obligations 381.2 384.1 3,362.1 3,062.6 Less: Current portion (40.2 ) (39.3 ) Long-term debt, net of current portion $ 3,321.9 $ 3,023.3
Schedule of Financial Covenants	Fiscal Quarters Ending Interest Coverage Ratio December 31, 2019 and March 31, 2020 3.00 to 1.00 June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021, September 30, 2021 and December 31, 2021 2.00 to 1.00 March 31, 2022 and thereafter 3.00 to 1.00 Fiscal Quarters Ending Leverage Ratio December 31, 2019 and March 31, 2020 4.50 to 1.00 June 30, 2020 4.75 to 1.00 September 30, 2020 5.50 to 1.00 December 31, 2020 6.50 to 1.00 March 31, 2021 6.50 to 1.00 June 30, 2021 6.00 to 1.00 September 30, 2021 5.50 to 1.00 December 31, 2021 5.00 to 1.00 March 31, 2022 and thereafter 4.25 to 1.00

Redeemable Noncontrolling Int_2

Redeemable Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2020
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interests Activity	The following is a summary of the activity related to our Redeemable noncontrolling interests during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 Balance at beginning of period $ 239.6 $ 261.7 Net income attributable to noncontrolling interests 2.0 4.0 Distributions declared (2.1 ) (1.8 ) Contribution to joint venture 3.1 — Reclassification to noncontrolling interests — (11.2 ) Purchase of redeemable noncontrolling interests (162.3 ) — Exchange transaction (46.3 ) — Change in fair value — 20.3 Balance at end of period $ 34.0 $ 273.0
Reconciliation of Noncontrolling Interests	The following table reconciles the net income attributable to nonredeemable Noncontrolling interests , as recorded in the shareholders’ equity section of the condensed consolidated balance sheets, and the net income attributable to Redeemable noncontrolling interests , as recorded in the mezzanine section of the condensed consolidated balance sheets, to the Net and comprehensive income attributable to noncontrolling interests presented in the condensed consolidated statements of comprehensive income for the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 Net income attributable to nonredeemable noncontrolling interests $ 19.7 $ 18.9 Net income attributable to redeemable noncontrolling interests 2.0 4.0 Net income attributable to noncontrolling interests $ 21.7 $ 22.9

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis	Our financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in millions): Fair Value Measurements at Reporting Date Using As of March 31, 2020 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (1) Other long-term assets: Equity securities $ 61.8 $ — $ 61.8 $ — M Debt securities 9.4 9.4 — — M Redeemable noncontrolling interests 34.0 — — 34.0 I As of December 31, 2019 Other long-term assets: Equity securities $ 63.5 $ — $ 63.5 $ — M Debt securities 12.6 12.6 — — M Redeemable noncontrolling interests 239.6 — — 239.6 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I).
Schedule of Carrying Amounts and Estimated Fair Values, Financial Instruments	The carrying amounts and estimated fair values for all of our other financial instruments are presented in the following table (in millions): As of March 31, 2020 As of December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ 350.0 $ 350.0 $ 45.0 $ 45.0 Term loan facilities 261.9 263.3 265.2 266.6 5.125% Senior Notes due 2023 297.5 298.5 297.3 306.6 5.75% Senior Notes due 2024 697.5 703.5 697.3 708.8 5.75% Senior Notes due 2025 345.8 344.3 345.6 369.7 4.50% Senior Notes due 2028 491.9 491.3 491.7 519.4 4.75% Senior Notes due 2030 491.8 496.1 491.7 520.0 Other notes payable 44.5 44.5 44.7 44.7 Financial commitments: Letters of credit — 36.7 — 38.9

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Common Share	The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts): Three Months Ended March 31, 2020 2019 Basic: Numerator: Income from continuing operations $ 108.8 $ 125.7 Less: Net income attributable to noncontrolling interests included in continuing operations (21.7 ) (22.9 ) Less: Income allocated to participating securities (0.3 ) (0.4 ) Income from continuing operations attributable to Encompass Health common shareholders 86.8 102.4 Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders (0.1 ) (0.5 ) Net income attributable to Encompass Health common shareholders $ 86.7 $ 101.9 Denominator: Basic weighted average common shares outstanding 98.2 98.4 Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.88 $ 1.05 Discontinued operations — (0.01 ) Net income $ 0.88 $ 1.04 Diluted: Numerator: Income from continuing operations $ 108.8 $ 125.7 Less: Net income attributable to noncontrolling interests included in continuing operations (21.7 ) (22.9 ) Income from continuing operations attributable to Encompass Health common shareholders 87.1 102.8 Loss from discontinued operations, net of tax, attributable to Encompass Health common shareholders (0.1 ) (0.5 ) Net income attributable to Encompass Health common shareholders $ 87.0 $ 102.3 Denominator: Diluted weighted average common shares outstanding 99.6 99.7 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 0.87 $ 1.04 Discontinued operations — (0.01 ) Net income $ 0.87 $ 1.03
Reconciliation of Weighted Average Number of Shares Outstanding	The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions): Three Months Ended March 31, 2020 2019 Basic weighted average common shares outstanding 98.2 98.4 Restricted stock awards, dilutive stock options, and restricted stock units 1.4 1.3 Diluted weighted average common shares outstanding 99.6 99.7

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Selected financial information for our reportable segments is as follows (in millions): Inpatient Rehabilitation Home Health and Hospice Three Months Ended March 31, Three Months Ended March 31, 2020 2019 2020 2019 Net operating revenues $ 909.2 $ 870.1 $ 272.8 $ 253.9 Operating expenses: Inpatient rehabilitation: Salaries and benefits 482.3 445.0 — — Other operating expenses 134.7 127.6 — — Supplies 39.6 35.6 — — Occupancy costs 15.3 15.8 — — Home health and hospice: Cost of services sold (excluding depreciation and amortization) — — 130.9 116.5 Support and overhead costs — — 100.2 88.8 671.9 624.0 231.1 205.3 Other expense (income) 1.6 (2.8 ) — — Equity in net income of nonconsolidated affiliates (0.6 ) (2.1 ) (0.2 ) (0.4 ) Noncontrolling interests 20.8 21.0 0.9 2.7 Segment Adjusted EBITDA $ 215.5 $ 230.0 $ 41.0 $ 46.3 Capital expenditures $ 83.3 $ 70.4 $ 1.5 $ 4.5
Reconciliation of Assets from Segment to Consolidated	March 31, 2020 December 31, 2019 Total assets for reportable segments $ 6,198.0 $ 6,114.2 Reclassification of deferred income tax liabilities to net deferred income tax assets (60.3 ) (33.5 ) Total consolidated assets $ 6,137.7 $ 6,080.7 Inpatient Rehabilitation Home Health and Hospice Encompass Health Consolidated As of March 31, 2020 Total assets $ 4,558.8 $ 1,639.2 $ 6,137.7 Investments in and advances to nonconsolidated affiliates 1.8 3.9 5.7 As of December 31, 2019 Total assets $ 4,501.4 $ 1,612.8 $ 6,080.7 Investments in and advances to nonconsolidated affiliates 2.0 5.4 7.4
Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense	Segment reconciliations (in millions): Three Months Ended March 31, 2020 2019 Total Segment Adjusted EBITDA $ 256.5 $ 276.3 General and administrative expenses (35.6 ) (53.4 ) Depreciation and amortization (58.8 ) (52.5 ) Loss on disposal of assets (0.1 ) (1.1 ) Government, class action, and related settlements (2.8 ) — Interest expense and amortization of debt discounts and fees (43.2 ) (37.2 ) Net income attributable to noncontrolling interests 21.7 22.9 SARs mark-to-market impact on noncontrolling interests — 0.8 Change in fair market value of equity securities (2.5 ) 0.9 Gain on consolidation of Treasure Coast 2.2 — Payroll taxes on SARs exercise (1.5 ) (0.2 ) Income from continuing operations before income tax expense $ 135.9 $ 156.5
Reconciliation of Revenue from Segments to Consolidated	Additional detail regarding the revenues of our operating segments by service line follows (in millions): Three Months Ended March 31, 2020 2019 Inpatient rehabilitation: Inpatient $ 890.0 $ 847.6 Outpatient and other 19.2 22.5 Total inpatient rehabilitation 909.2 870.1 Home health and hospice: Home health 224.8 219.5 Hospice 48.0 34.4 Total home health and hospice 272.8 253.9 Total net operating revenues $ 1,182.0 $ 1,124.0

Condensed Consolidating Finan_2

Condensed Consolidating Financial Information (Tables)	3 Months Ended
	Mar. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Condensed Consolidating Statement of Income	Three Months Ended March 31, 2020 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net operating revenues $ 4.6 $ 622.5 $ 323.3 $ 266.8 $ (35.2 ) $ 1,182.0 Operating expenses: Salaries and benefits 16.7 309.8 164.2 193.3 (4.9 ) 679.1 Other operating expenses 9.6 86.9 52.0 24.1 (13.0 ) 159.6 Occupancy costs 0.6 25.4 6.7 4.8 (17.3 ) 20.2 Supplies — 26.5 13.2 6.0 — 45.7 General and administrative expenses 34.7 — — 0.9 — 35.6 Depreciation and amortization 5.3 28.7 15.0 9.8 — 58.8 Government, class action, and related settlements 2.8 — — — — 2.8 Total operating expenses 69.7 477.3 251.1 238.9 (35.2 ) 1,001.8 Interest expense and amortization of debt discounts and fees 35.8 6.3 1.4 4.9 (5.2 ) 43.2 Other (income) expense (2.3 ) (0.4 ) 1.6 (2.2 ) 5.2 1.9 Equity in net income of nonconsolidated affiliates — (0.5 ) (0.1 ) (0.2 ) — (0.8 ) Equity in net income of consolidated affiliates (122.2 ) (17.8 ) — — 140.0 — Management fees (42.0 ) 30.2 11.8 — — — Income from continuing operations before income tax (benefit) expense 65.6 127.4 57.5 25.4 (140.0 ) 135.9 Provision for income tax (benefit) expense (21.5 ) 33.0 9.1 6.5 — 27.1 Income from continuing operations 87.1 94.4 48.4 18.9 (140.0 ) 108.8 Loss from discontinued operations, net of tax (0.1 ) — — — — (0.1 ) Net and comprehensive income 87.0 94.4 48.4 18.9 (140.0 ) 108.7 Less: Net and comprehensive income attributable to noncontrolling interests — — (21.2 ) (0.5 ) — (21.7 ) Net and comprehensive income attributable to Encompass Health $ 87.0 $ 94.4 $ 27.2 $ 18.4 $ (140.0 ) $ 87.0 Three Months Ended March 31, 2019 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net operating revenues $ 5.1 $ 606.5 $ 296.5 $ 249.5 $ (33.6 ) $ 1,124.0 Operating expenses: Salaries and benefits 15.9 288.9 148.0 173.1 (5.1 ) 620.8 Other operating expenses 10.3 84.7 46.8 20.8 (12.5 ) 150.1 Occupancy costs 0.5 24.9 6.5 3.7 (16.0 ) 19.6 Supplies — 24.0 11.6 4.5 — 40.1 General and administrative expenses 39.9 — — 13.5 — 53.4 Depreciation and amortization 5.0 26.3 13.1 8.1 — 52.5 Total operating expenses 71.6 448.8 226.0 223.7 (33.6 ) 936.5 Interest expense and amortization of debt discounts and fees 30.1 6.2 1.3 6.4 (6.8 ) 37.2 Other income (7.7 ) (0.3 ) (2.5 ) — 6.8 (3.7 ) Equity in net income of nonconsolidated affiliates — (2.0 ) (0.1 ) (0.4 ) — (2.5 ) Equity in net income of consolidated affiliates (130.2 ) (17.1 ) — — 147.3 — Management fees (39.8 ) 29.5 10.3 — — — Income from continuing operations before income tax (benefit) expense 81.1 141.4 61.5 19.8 (147.3 ) 156.5 Provision for income tax (benefit) expense (21.7 ) 37.8 10.2 4.5 — 30.8 Income from continuing operations 102.8 103.6 51.3 15.3 (147.3 ) 125.7 Loss from discontinued operations, net of tax (0.5 ) — — — — (0.5 ) Net and comprehensive income 102.3 103.6 51.3 15.3 (147.3 ) 125.2 Less: Net and comprehensive income attributable to noncontrolling interests — — (21.2 ) (1.7 ) — (22.9 ) Net and comprehensive income attributable to Encompass Health $ 102.3 $ 103.6 $ 30.1 $ 13.6 $ (147.3 ) $ 102.3
Condensed Consolidating Statement of Comprehensive Income	Three Months Ended March 31, 2020 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net operating revenues $ 4.6 $ 622.5 $ 323.3 $ 266.8 $ (35.2 ) $ 1,182.0 Operating expenses: Salaries and benefits 16.7 309.8 164.2 193.3 (4.9 ) 679.1 Other operating expenses 9.6 86.9 52.0 24.1 (13.0 ) 159.6 Occupancy costs 0.6 25.4 6.7 4.8 (17.3 ) 20.2 Supplies — 26.5 13.2 6.0 — 45.7 General and administrative expenses 34.7 — — 0.9 — 35.6 Depreciation and amortization 5.3 28.7 15.0 9.8 — 58.8 Government, class action, and related settlements 2.8 — — — — 2.8 Total operating expenses 69.7 477.3 251.1 238.9 (35.2 ) 1,001.8 Interest expense and amortization of debt discounts and fees 35.8 6.3 1.4 4.9 (5.2 ) 43.2 Other (income) expense (2.3 ) (0.4 ) 1.6 (2.2 ) 5.2 1.9 Equity in net income of nonconsolidated affiliates — (0.5 ) (0.1 ) (0.2 ) — (0.8 ) Equity in net income of consolidated affiliates (122.2 ) (17.8 ) — — 140.0 — Management fees (42.0 ) 30.2 11.8 — — — Income from continuing operations before income tax (benefit) expense 65.6 127.4 57.5 25.4 (140.0 ) 135.9 Provision for income tax (benefit) expense (21.5 ) 33.0 9.1 6.5 — 27.1 Income from continuing operations 87.1 94.4 48.4 18.9 (140.0 ) 108.8 Loss from discontinued operations, net of tax (0.1 ) — — — — (0.1 ) Net and comprehensive income 87.0 94.4 48.4 18.9 (140.0 ) 108.7 Less: Net and comprehensive income attributable to noncontrolling interests — — (21.2 ) (0.5 ) — (21.7 ) Net and comprehensive income attributable to Encompass Health $ 87.0 $ 94.4 $ 27.2 $ 18.4 $ (140.0 ) $ 87.0 Three Months Ended March 31, 2019 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net operating revenues $ 5.1 $ 606.5 $ 296.5 $ 249.5 $ (33.6 ) $ 1,124.0 Operating expenses: Salaries and benefits 15.9 288.9 148.0 173.1 (5.1 ) 620.8 Other operating expenses 10.3 84.7 46.8 20.8 (12.5 ) 150.1 Occupancy costs 0.5 24.9 6.5 3.7 (16.0 ) 19.6 Supplies — 24.0 11.6 4.5 — 40.1 General and administrative expenses 39.9 — — 13.5 — 53.4 Depreciation and amortization 5.0 26.3 13.1 8.1 — 52.5 Total operating expenses 71.6 448.8 226.0 223.7 (33.6 ) 936.5 Interest expense and amortization of debt discounts and fees 30.1 6.2 1.3 6.4 (6.8 ) 37.2 Other income (7.7 ) (0.3 ) (2.5 ) — 6.8 (3.7 ) Equity in net income of nonconsolidated affiliates — (2.0 ) (0.1 ) (0.4 ) — (2.5 ) Equity in net income of consolidated affiliates (130.2 ) (17.1 ) — — 147.3 — Management fees (39.8 ) 29.5 10.3 — — — Income from continuing operations before income tax (benefit) expense 81.1 141.4 61.5 19.8 (147.3 ) 156.5 Provision for income tax (benefit) expense (21.7 ) 37.8 10.2 4.5 — 30.8 Income from continuing operations 102.8 103.6 51.3 15.3 (147.3 ) 125.7 Loss from discontinued operations, net of tax (0.5 ) — — — — (0.5 ) Net and comprehensive income 102.3 103.6 51.3 15.3 (147.3 ) 125.2 Less: Net and comprehensive income attributable to noncontrolling interests — — (21.2 ) (1.7 ) — (22.9 ) Net and comprehensive income attributable to Encompass Health $ 102.3 $ 103.6 $ 30.1 $ 13.6 $ (147.3 ) $ 102.3
Condensed Consolidating Balance Sheet	As of March 31, 2020 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Assets Current assets: Cash and cash equivalents $ 79.0 $ 3.7 $ 7.8 $ 14.4 $ — $ 104.9 Restricted cash — — 56.7 — — 56.7 Accounts receivable — 270.8 131.6 141.0 — 543.4 Other current assets 79.8 34.7 45.1 7.2 (87.3 ) 79.5 Total current assets 158.8 309.2 241.2 162.6 (87.3 ) 784.5 Property and equipment, net 138.5 1,268.0 567.4 29.4 — 2,003.3 Operating lease right-of-use assets 9.7 158.0 80.1 43.2 (23.1 ) 267.9 Goodwill — 912.2 329.0 1,070.9 — 2,312.1 Intangible assets, net 15.8 98.9 64.8 285.2 — 464.7 Deferred income tax assets 52.6 11.1 0.1 — (62.3 ) 1.5 Other long-term assets 51.7 86.8 152.9 12.3 — 303.7 Intercompany receivable and investments in consolidated affiliates 4,245.7 657.6 — 7.5 (4,910.8 ) — Total assets $ 4,672.8 $ 3,501.8 $ 1,435.5 $ 1,611.1 $ (5,083.5 ) $ 6,137.7 Liabilities and Shareholders’ Equity Current liabilities: Current portion of long-term debt $ 17.0 $ 10.8 $ 3.9 $ 8.5 $ — $ 40.2 Current operating lease liabilities 1.4 19.2 14.2 13.6 (7.6 ) 40.8 Accounts payable 12.5 57.2 25.0 3.3 — 98.0 Accrued expenses and other current liabilities 171.5 110.4 134.0 78.6 (87.3 ) 407.2 Total current liabilities 202.4 197.6 177.1 104.0 (94.9 ) 586.2 Long-term debt, net of current portion 2,973.0 302.5 40.6 5.8 — 3,321.9 Long-term operating lease liabilities 8.6 143.5 69.1 29.6 (15.7 ) 235.1 Other long-term liabilities 44.9 12.0 105.0 63.6 (62.2 ) 163.3 Intercompany payable — — 66.0 — (66.0 ) — 3,228.9 655.6 457.8 203.0 (238.8 ) 4,306.5 Commitments and contingencies Redeemable noncontrolling interests — — 34.0 — — 34.0 Shareholders’ equity: Encompass Health shareholders’ equity 1,443.9 2,846.2 590.4 1,408.1 (4,844.7 ) 1,443.9 Noncontrolling interests — — 353.3 — — 353.3 Total shareholders’ equity 1,443.9 2,846.2 943.7 1,408.1 (4,844.7 ) 1,797.2 Total liabilities and shareholders’ equity $ 4,672.8 $ 3,501.8 $ 1,435.5 $ 1,611.1 $ (5,083.5 ) $ 6,137.7 As of December 31, 2019 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Assets Current assets: Cash and cash equivalents $ 53.7 $ 5.2 $ 6.0 $ 29.9 $ — $ 94.8 Restricted cash — — 57.4 — — 57.4 Accounts receivable — 280.4 125.6 100.1 — 506.1 Other current assets 64.3 35.4 9.3 7.8 (19.3 ) 97.5 Total current assets 118.0 321.0 198.3 137.8 (19.3 ) 755.8 Property and equipment, net 133.4 1,246.0 551.2 28.7 — 1,959.3 Operating lease right-of-use assets 10.1 171.5 86.5 43.7 (35.3 ) 276.5 Goodwill — 912.2 323.0 1,070.0 — 2,305.2 Intangible assets, net 17.7 101.7 65.3 291.6 — 476.3 Deferred income tax assets 27.2 11.1 0.1 — (35.5 ) 2.9 Other long-term assets 53.6 85.4 151.6 14.1 — 304.7 Intercompany notes receivable 737.8 — — — (737.8 ) — Intercompany receivable and investments in consolidated affiliates 3,155.4 523.6 — — (3,679.0 ) — Total assets $ 4,253.2 $ 3,372.5 $ 1,376.0 $ 1,585.9 $ (4,506.9 ) $ 6,080.7 Liabilities and Shareholders’ Equity Current liabilities: Current portion of long-term debt $ 17.0 $ 10.4 $ 3.8 $ 8.1 $ — $ 39.3 Current operating lease liabilities 1.3 21.9 16.0 12.1 (10.9 ) 40.4 Accounts payable 9.8 56.5 24.3 4.0 — 94.6 Accrued expenses and other current liabilities 147.4 108.7 109.2 200.7 (19.3 ) 546.7 Total current liabilities 175.5 197.5 153.3 224.9 (30.2 ) 721.0 Long-term debt, net of current portion 2,670.6 305.4 41.6 5.7 — 3,023.3 Long-term operating lease liabilities 9.0 153.9 73.6 31.9 (24.6 ) 243.8 Intercompany notes payable — — — 737.8 (737.8 ) — Other long-term liabilities 45.9 12.2 100.3 37.0 (35.5 ) 159.9 Intercompany payable — — 66.0 4.4 (70.4 ) — 2,901.0 669.0 434.8 1,041.7 (898.5 ) 4,148.0 Commitments and contingencies Redeemable noncontrolling interests — — 31.4 208.2 — 239.6 Shareholders’ equity: Encompass Health shareholders’ equity 1,352.2 2,703.5 568.9 336.0 (3,608.4 ) 1,352.2 Noncontrolling interests — — 340.9 — — 340.9 Total shareholders’ equity 1,352.2 2,703.5 909.8 336.0 (3,608.4 ) 1,693.1 Total liabilities and shareholders’ equity $ 4,253.2 $ 3,372.5 $ 1,376.0 $ 1,585.9 $ (4,506.9 ) $ 6,080.7
Condensed Consolidating Statement of Cash Flows	Three Months Ended March 31, 2020 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net cash (used in) provided by operating activities $ (31.2 ) $ 117.7 $ 56.8 $ (114.0 ) $ — $ 29.3 Cash flows from investing activities: Purchases of property and equipment (9.3 ) (49.5 ) (23.4 ) (1.3 ) — (83.5 ) Acquisitions of businesses, net of cash acquired — — — (1.1 ) — (1.1 ) Funding of intercompany note receivable (15.0 ) — — — 15.0 — Other, net (2.8 ) 0.7 3.9 (0.2 ) — 1.6 Net cash used in investing activities (27.1 ) (48.8 ) (19.5 ) (2.6 ) 15.0 (83.0 ) Cash flows from financing activities: Principal borrowings on intercompany note payable — — — 15.0 (15.0 ) — Borrowings on revolving credit facility 330.0 — — — — 330.0 Payments on revolving credit facility (25.0 ) — — — — (25.0 ) Dividends paid on common stock (28.9 ) — — (0.1 ) — (29.0 ) Purchase of equity interests in consolidated affiliates (162.3 ) — — — — (162.3 ) Distributions paid to noncontrolling interests of consolidated affiliates — — (19.1 ) — — (19.1 ) Taxes paid on behalf of employees for shares withheld (14.6 ) — — (1.0 ) — (15.6 ) Other, net (8.5 ) (2.5 ) 5.0 (1.9 ) — (7.9 ) Change in intercompany advances (7.1 ) (67.9 ) (14.1 ) 89.1 — — Net cash provided by (used in) financing activities 83.6 (70.4 ) (28.2 ) 101.1 (15.0 ) 71.1 Increase (decrease) in cash, cash equivalents, and restricted cash 25.3 (1.5 ) 9.1 (15.5 ) — 17.4 Cash, cash equivalents, and restricted cash at beginning of period 53.7 5.2 70.8 29.9 — 159.6 Cash, cash equivalents, and restricted cash at end of period $ 79.0 $ 3.7 $ 79.9 $ 14.4 $ — $ 177.0 Reconciliation of Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents at beginning of period $ 53.7 $ 5.2 $ 6.0 $ 29.9 $ — $ 94.8 Restricted cash at beginning of period — — 57.4 — — 57.4 Restricted cash included in other long term assets at beginning of period — — 7.4 — — 7.4 Cash, cash equivalents, and restricted cash at beginning of period $ 53.7 $ 5.2 $ 70.8 $ 29.9 $ — $ 159.6 Cash and cash equivalents at end of period $ 79.0 $ 3.7 $ 7.8 $ 14.4 $ — $ 104.9 Restricted cash at end of period — — 56.7 — — 56.7 Restricted cash included in other long-term assets at end of period — — 15.4 — — 15.4 Cash, cash equivalents, and restricted cash at end of period $ 79.0 $ 3.7 $ 79.9 $ 14.4 $ — $ 177.0 Supplemental schedule of noncash financing activity: Capital contribution of intercompany note $ 853.0 $ — $ — (853.0 ) $ — $ — Three Months Ended March 31, 2019 Encompass Health Corporation Guarantor Subsidiaries Non-guarantor Subsidiaries Holdings Eliminating Entries Encompass Health Consolidated (In Millions) Net cash provided by operating activities $ 18.6 $ 89.6 $ 42.4 $ 9.3 $ — $ 159.9 Cash flows from investing activities: Purchases of property and equipment (6.8 ) (32.5 ) (29.4 ) (3.6 ) — (72.3 ) Acquisitions of businesses, net of cash acquired — — — (13.7 ) — (13.7 ) Funding of intercompany note receivable (8.0 ) — — — 8.0 — Proceeds from repayment of intercompany note receivable 5.0 — — — (5.0 ) — Other, net (4.0 ) (0.1 ) (0.7 ) (0.7 ) — (5.5 ) Net cash used in investing activities (13.8 ) (32.6 ) (30.1 ) (18.0 ) 3.0 (91.5 ) Cash flows from financing activities: Principal borrowings on intercompany note payable — — — 8.0 (8.0 ) — Principal payments on intercompany note payable — — — (5.0 ) 5.0 — Borrowings on revolving credit facility 25.0 — — — — 25.0 Payments on revolving credit facility (30.0 ) — — — — (30.0 ) Dividends paid on common stock (28.2 ) — (0.1 ) — (28.3 ) Distributions paid to noncontrolling interests of consolidated affiliates — — (19.5 ) — — (19.5 ) Taxes paid on behalf of employees for shares withheld (14.7 ) — — (1.2 ) — (15.9 ) Other, net (14.7 ) (2.1 ) 5.6 (1.8 ) — (13.0 ) Change in intercompany advances 51.0 (54.4 ) 2.1 1.3 — — Net cash used in financing activities (11.6 ) (56.5 ) (11.8 ) 1.2 (3.0 ) (81.7 ) (Decrease) increase in cash, cash equivalents, and restricted cash (6.8 ) 0.5 0.5 (7.5 ) — (13.3 ) Cash, cash equivalents, and restricted cash at beginning of period 41.5 3.0 69.4 19.6 — 133.5 Cash, cash equivalents, and restricted cash at end of period $ 34.7 $ 3.5 $ 69.9 $ 12.1 $ — $ 120.2 Reconciliation of Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents at beginning of period $ 41.5 $ 3.0 $ 5.1 $ 19.6 $ — $ 69.2 Restricted cash at beginning of period — — 59.0 — — 59.0 Long term restricted cash at beginning of period — — 5.3 — — 5.3 Cash, cash equivalents, and restricted cash at beginning of period $ 41.5 $ 3.0 $ 69.4 $ 19.6 $ — $ 133.5 Cash and cash equivalents at end of period $ 34.7 $ 3.5 $ 5.8 $ 12.1 $ — $ 56.1 Restricted cash at end of period — — 59.0 — — 59.0 Long term restricted cash at end of period — — 5.1 — — 5.1 Cash, cash equivalents, and restricted cash at end of period $ 34.7 $ 3.5 $ 69.9 $ 12.1 $ — $ 120.2

Basis of Presentation - Textual

Basis of Presentation - Textuals (Details) $ in Millions	May 11, 2020USD ($)	Mar. 31, 2020segmentstate
Subsequent Event [Line Items]
Number of states in which entity operates | state		37
Number of operating segments | segment		2
Subsequent Event [Member]
Subsequent Event [Line Items]
Cash proceeds from CARES Act relief fund | $	$ 238

Basis of Presentation - Net Ope

Basis of Presentation - Net Operating Revenues (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 1,182	$ 1,124
Net operating revenues | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	1,182	1,124
Net operating revenues | Other income | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	11.7	12.3
Net operating revenues | Inpatient Rehabilitation | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	909.2	870.1
Net operating revenues | Inpatient Rehabilitation | Other income | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	11.5	12
Net operating revenues | Home Health and Hospice | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	272.8	253.9
Net operating revenues | Home Health and Hospice | Other income | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	0.2	0.3
Net operating revenues | Third-Party Payor | Medicare | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	868.1	853.7
Net operating revenues | Third-Party Payor | Medicare Advantage | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	140.9	110.7
Net operating revenues | Third-Party Payor | Managed care | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	102.3	91.9
Net operating revenues | Third-Party Payor | Medicaid | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	34.9	30.5
Net operating revenues | Third-Party Payor | Other third-party payors | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	11	10
Net operating revenues | Third-Party Payor | Workers’ compensation | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	7.2	8.4
Net operating revenues | Third-Party Payor | Inpatient Rehabilitation | Medicare | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	641.9	638.9
Net operating revenues | Third-Party Payor | Inpatient Rehabilitation | Medicare Advantage | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	111.5	85.2
Net operating revenues | Third-Party Payor | Inpatient Rehabilitation | Managed care | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	90.2	83.5
Net operating revenues | Third-Party Payor | Inpatient Rehabilitation | Medicaid | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	30.7	26.2
Net operating revenues | Third-Party Payor | Inpatient Rehabilitation | Other third-party payors | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	11	10
Net operating revenues | Third-Party Payor | Inpatient Rehabilitation | Workers’ compensation | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	6.9	8.2
Net operating revenues | Third-Party Payor | Home Health and Hospice | Medicare | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	226.2	214.8
Net operating revenues | Third-Party Payor | Home Health and Hospice | Medicare Advantage | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	29.4	25.5
Net operating revenues | Third-Party Payor | Home Health and Hospice | Managed care | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	12.1	8.4
Net operating revenues | Third-Party Payor | Home Health and Hospice | Medicaid | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	4.2	4.3
Net operating revenues | Third-Party Payor | Home Health and Hospice | Other third-party payors | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	0	0
Net operating revenues | Third-Party Payor | Home Health and Hospice | Workers’ compensation | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	0.3	0.2
Net operating revenues | Self-Pay | Patients | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	5.9	6.5
Net operating revenues | Self-Pay | Inpatient Rehabilitation | Patients | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	5.5	6.1
Net operating revenues | Self-Pay | Home Health and Hospice | Patients | Payor Source
Disaggregation of Revenue [Line Items]
Net operating revenues	$ 0.4	$ 0.4

Variable Interest Entities - Te

Variable Interest Entities - Textual (Details) - Consolidated VIEs - entity	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Number of consolidated limited partnership-like entities	9	8
Minimum
Variable Interest Entity [Line Items]
Ownership interest in consolidated entities (percent)	50.00%	50.00%
Maximum
Variable Interest Entity [Line Items]
Ownership interest in consolidated entities (percent)	75.00%	75.00%

Variable Interest Entities - Sc

Variable Interest Entities - Schedule of Carrying Amounts and Classifications of VIE's Assets and Liabilities (Details) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents		$ 104.9	$ 94.8	$ 56.1	$ 69.2
Accounts receivable		543.4	506.1
Other current assets		79.5	97.5
Total current assets		784.5	755.8
Property and equipment, net		2,003.3	1,959.3
Operating lease right-of-use assets		267.9	276.5
Goodwill		2,312.1	2,305.2
Intangible assets, net		464.7	476.3
Other long-term assets		303.7	304.7
Total assets	[1]	6,137.7	6,080.7
Current liabilities:
Current portion of long-term debt		40.2	39.3
Current operating lease liabilities		40.8	40.4
Accounts payable		98	94.6
Accrued expenses and other current liabilities		407.2	546.7
Total current liabilities		586.2	721
Long-term debt, net of current portion		3,321.9	3,023.3
Long-term operating lease liabilities		235.1	243.8
Total liabilities		4,306.5	4,148
VIE
Current assets:
Cash and cash equivalents		1.1	0.2
Accounts receivable		31.3	29.3
Other current assets		7.7	6.4
Total current assets		40.1	35.9
Property and equipment, net		120.9	122.6
Operating lease right-of-use assets		5.8	6
Goodwill		19.2	15.9
Intangible assets, net		4.8	3.3
Other long-term assets		31.4	31.3
Total assets		222.2	215
Current liabilities:
Current portion of long-term debt		0.9	0.8
Current operating lease liabilities		1.5	1.4
Accounts payable		5.6	6.7
Accrued expenses and other current liabilities		16.6	17
Total current liabilities		24.6	25.9
Long-term debt, net of current portion		10.3	10.5
Long-term operating lease liabilities		4.4	4.7
Total liabilities		$ 39.3	$ 41.1
[1]	Our consolidated assets as of March 31, 2020 and December 31, 2019 include total assets of variable interest entities of $222.2 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $39.3 million and $41.1 million , respectively. See Note 2 , Variable Interest Entities .

Long-term Debt - Long-term Debt

Long-term Debt - Long-term Debt Outstanding (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Schedule of Outstanding Long-term Debt
Finance lease obligations	$ 381.2
Capital lease obligations		$ 384.1
Total debt and finance lease obligations	3,362.1	3,062.6
Less: Current portion	(40.2)	(39.3)
Long-term debt, net of current portion	3,321.9	3,023.3
Term loan facilities | Term loan facilities
Schedule of Outstanding Long-term Debt
Total debt	$ 261.9	$ 265.2
Senior Notes | 5.125% Senior Notes due 2023
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	5.125%	5.125%
Total debt	$ 297.5	$ 297.3
Senior Notes | 5.75% Senior Notes due 2024
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	5.75%	5.75%
Total debt	$ 697.5	$ 697.3
Senior Notes | 5.75% Senior Notes due 2025
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	5.75%	5.75%
Total debt	$ 345.8	$ 345.6
Senior Notes | 4.50% Senior Notes due 2028
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	4.50%	4.50%
Total debt	$ 491.9	$ 491.7
Senior Notes | 4.75% Senior Notes due 2030
Schedule of Outstanding Long-term Debt
Debt instrument interest rate (percent)	4.75%	4.75%
Total debt	$ 491.8	$ 491.7
Other Notes Payable
Schedule of Outstanding Long-term Debt
Total debt	44.5	44.7
Revolving Credit Facility
Schedule of Outstanding Long-term Debt
Total debt	$ 350	$ 45

Long-term Debt - Financial Cove

Long-term Debt - Financial Covenants (Details)	3 Months Ended	9 Months Ended	18 Months Ended
	Mar. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020
Debt Instrument [Line Items]
Interest Coverage Ratio	3
Leverage Ratio	4.50
Forecast
Debt Instrument [Line Items]
Interest Coverage Ratio		3	2
Leverage Ratio			5	4.25	5.50	6	6.50	6.50	5.50	4.75

Redeemable Noncontrolling Int_3

Redeemable Noncontrolling Interests - Redeemable Noncontrolling Interests Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Redeemable Noncontrolling Interest, Equity, Carrying Amount Roll Forward [Abstract]
Balance at beginning of period	$ 239.6
Net income attributable to noncontrolling interests	2	$ 4
Distributions declared	(15.5)	(15.3)
Change in fair value		(20.3)
Balance at end of period	34
Redeemable Noncontrolling Interest
Redeemable Noncontrolling Interest, Equity, Carrying Amount Roll Forward [Abstract]
Balance at beginning of period	239.6	261.7
Net income attributable to noncontrolling interests	2	4
Distributions declared	(2.1)	(1.8)
Contribution to joint venture	3.1	0
Reclassification to noncontrolling interests	0	(11.2)
Purchase of redeemable noncontrolling interests	(162.3)	0
Exchange transaction	(46.3)	0
Change in fair value	0	20.3
Balance at end of period	$ 34	$ 273

Redeemable Noncontrolling Int_4

Redeemable Noncontrolling Interests - Reconciliation of Noncontrolling Interests (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Noncontrolling Interest [Abstract]
Net income attributable to nonredeemable noncontrolling interests	$ 19.7	$ 18.9
Net income attributable to redeemable noncontrolling interests	2	4
Net income attributable to noncontrolling interests	$ 21.7	$ 22.9

Redeemable Noncontrolling Int_5

Redeemable Noncontrolling Interests - Textuals (Details) - USD ($) $ in Millions	Feb. 18, 2020	Feb. 21, 2018	Jan. 31, 2020	Sep. 30, 2019	Jul. 31, 2019	Feb. 28, 2018	Mar. 31, 2020	Mar. 31, 2019	Feb. 20, 2020	Dec. 31, 2019	Dec. 31, 2014
Noncontrolling Interest [Line Items]
Redeemable noncontrolling interests							$ 34			$ 239.6
Percentage of shares exercised by investor			4.30%		5.60%	5.60%
Purchase of redeemable noncontrolling interests	$ 162	$ 65		$ 163			$ 162.3	$ 0
Temporary equity, shares issued (in shares)									560,957
Temporary equity, shares to management investors exchange agreements percentages									0.60%
EHHI
Noncontrolling Interest [Line Items]
Outstanding common stock of Holdings, fair value	$ 46
EHHI | Home Health and Hospice
Noncontrolling Interest [Line Items]
Redeemable noncontrolling interest, equity, acquired percent											83.30%
Redeemable noncontrolling interests											$ 64
Subsidiary's common stock held by subsidiary 's management, Percent											16.70%
Holdings And EHHI
Noncontrolling Interest [Line Items]
Ownership percentage							100.00%

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Market Approach
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	$ 61.8	$ 63.5
Debt securities	9.4	12.6
Market Approach | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	0	0
Debt securities	9.4	12.6
Market Approach | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	61.8	63.5
Debt securities	0	0
Market Approach | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Equity securities	0	0
Debt securities	0	0
Income Approach
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Redeemable noncontrolling interests	34	239.6
Income Approach | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Redeemable noncontrolling interests	0	0
Income Approach | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Redeemable noncontrolling interests	0	0
Income Approach | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
Redeemable noncontrolling interests	$ 34	$ 239.6

Fair Value Measurements - Textu

Fair Value Measurements - Textuals (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains or losses related to non-financial assets and liabilities	$ 0

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values, Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Revolving Credit Facility | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 350	$ 45
Revolving Credit Facility | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	350	45
Letters of Credit | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	0	0
Letters of Credit | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	36.7	38.9
Term loan facilities | Term loan facilities | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	261.9	265.2
Term loan facilities | Term loan facilities | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 263.3	$ 266.6
Senior Notes | 5.125% Senior Notes due 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	5.125%	5.125%
Senior Notes | 5.125% Senior Notes due 2023 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 297.5	$ 297.3
Senior Notes | 5.125% Senior Notes due 2023 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 298.5	$ 306.6
Senior Notes | 5.75% Senior Notes due 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	5.75%	5.75%
Senior Notes | 5.75% Senior Notes due 2024 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 697.5	$ 697.3
Senior Notes | 5.75% Senior Notes due 2024 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 703.5	$ 708.8
Senior Notes | 5.75% Senior Notes due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	5.75%	5.75%
Senior Notes | 5.75% Senior Notes due 2025 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 345.8	$ 345.6
Senior Notes | 5.75% Senior Notes due 2025 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 344.3	$ 369.7
Senior Notes | 4.50% Senior Notes due 2028
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	4.50%	4.50%
Senior Notes | 4.50% Senior Notes due 2028 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 491.9	$ 491.7
Senior Notes | 4.50% Senior Notes due 2028 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 491.3	$ 519.4
Senior Notes | 4.75% Senior Notes due 2030
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument interest rate (percent)	4.75%	4.75%
Senior Notes | 4.75% Senior Notes due 2030 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 491.8	$ 491.7
Senior Notes | 4.75% Senior Notes due 2030 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	496.1	520
Other Notes Payable | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	44.5	44.7
Other Notes Payable | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts and estimated fair values of financial instruments	$ 44.5	$ 44.7

Share-Based Payments - Textuals

Share-Based Payments - Textuals (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Feb. 29, 2020	Mar. 31, 2020	Dec. 31, 2019
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (shares)		400,000
Restricted Stock | Service Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (shares)		200,000
Restricted Stock | Service and Performance Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement period	2 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (shares)		100,000
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
SARs outstanding (in shares)			115,545
Fair value of SARs			$ 101
Cash used to settle award	$ 101

Income Taxes - Textuals (Detail

Income Taxes - Textuals (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Provision for income tax expense	$ 27.1	$ 30.8

Earnings per Common Share - Com

Earnings per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Basic Numerator:
Income from continuing operations	$ 108.8	$ 125.7
Less: Net income attributable to noncontrolling interests included in continuing operations	(21.7)	(22.9)
Less: Income allocated to participating securities	(0.3)	(0.4)
Income from continuing operations attributable to Encompass Health common shareholders	86.8	102.4
Loss from discontinued operations, net of tax	(0.1)	(0.5)
Net income attributable to Encompass Health common shareholders	$ 86.7	$ 101.9
Basic Denominator:
Basic weighted average common shares outstanding (shares)	98.2	98.4
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.88	$ 1.05
Discontinued operations (in dollars per share)	0	(0.01)
Net Income (in dollars per share)	$ 0.88	$ 1.04
Diluted Numerator
Income from continuing operations	$ 108.8	$ 125.7
Less: Net income attributable to noncontrolling interests included in continuing operations	(21.7)	(22.9)
Income from continuing operations attributable to Encompass Health common shareholders	87.1	102.8
Loss from discontinued operations, net of tax	(0.1)	(0.5)
Net income attributable to Encompass Health common shareholders	$ 87	$ 102.3
Diluted Denominator
Diluted weighted average common shares outstanding (shares)	99.6	99.7
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations (in dollars per share)	$ 0.87	$ 1.04
Discontinued operations (in dollars per share)	0	(0.01)
Net income (in dollars per share)	$ 0.87	$ 1.03

Earnings per Common Share - Rec

Earnings per Common Share - Reconciliation of Weighted Average Number of Shares Outstanding (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding (shares)	98.2	98.4
Restricted stock awards, dilutive stock options, and restricted stock units (shares)	1.4	1.3
Diluted weighted average common shares outstanding (shares)	99.6	99.7

Contingencies and Other Commi_2

Contingencies and Other Commitments (Details) $ in Millions	1 Months Ended
	Jul. 31, 2019USD ($)
Maximum | Settled Litigation | Nichols Litigation
Loss Contingencies [Line Items]
Cash payment for litigation settlement	$ 0.1

Segment Reporting - Textuals (D

Segment Reporting - Textuals (Details)	3 Months Ended
	Mar. 31, 2020hospitallocationsegmentstate
Segment Reporting Information [Line Items]
Number of operating segments | segment	2
Number of states in which entity operates | state	37
Inpatient Rehabilitation
Segment Reporting Information [Line Items]
Number of states in which entity operates | state	33
Number of inpatient rehabilitation hospitals operated	134
Number of solely owned inpatient rehabilitation hospitals	87
Number of jointly owned inpatient rehabilitation hospitals	47
Number of inpatient rehabilitation units under management contracts	3
Home Health and Hospice
Segment Reporting Information [Line Items]
Number of states in which entity operates | state	31
Number of home health locations | location	245
Number of hospice locations | location	83
Number of hospitals or agencies operated as a joint venture	1
Number of solely owned hospital based home health and hospice locations | location	320
Number of jointly owned hospital based home health and hospice locations | location	8
Minimum | Inpatient Rehabilitation
Segment Reporting Information [Line Items]
Joint venture ownership percentage	50.00%
Minimum | Home Health and Hospice
Segment Reporting Information [Line Items]
Joint venture ownership percentage	50.00%
Maximum | Inpatient Rehabilitation
Segment Reporting Information [Line Items]
Joint venture ownership percentage	97.50%
Maximum | Home Health and Hospice
Segment Reporting Information [Line Items]
Joint venture ownership percentage	81.00%

Segment Reporting - Segment Rep

Segment Reporting - Segment Reporting Information, Reconciliation of Net Operating Revenues to Segment Adjusted EBITDA (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Net operating revenues	$ 1,182	$ 1,124
Costs and Expenses [Abstract]
Salaries and benefits	679.1	620.8
Other operating expenses	159.6	150.1
Supplies	45.7	40.1
Occupancy costs	20.2	19.6
Total operating expenses	1,001.8	936.5
Other income	1.9	(3.7)
Equity in net income of nonconsolidated affiliates	(0.8)	(2.5)
Noncontrolling interests	21.7	22.9
Operating Segments
Costs and Expenses [Abstract]
Segment Adjusted EBITDA	256.5	276.3
Operating Segments | Inpatient Rehabilitation
Segment Reporting Information [Line Items]
Net operating revenues	909.2	870.1
Costs and Expenses [Abstract]
Salaries and benefits	482.3	445
Other operating expenses	134.7	127.6
Supplies	39.6	35.6
Occupancy costs	15.3	15.8
Total operating expenses	671.9	624
Other income	1.6	(2.8)
Equity in net income of nonconsolidated affiliates	(0.6)	(2.1)
Noncontrolling interests	20.8	21
Segment Adjusted EBITDA	215.5	230
Capital expenditures	83.3	70.4
Operating Segments | Home Health and Hospice
Segment Reporting Information [Line Items]
Net operating revenues	272.8	253.9
Costs and Expenses [Abstract]
Cost of services sold (excluding depreciation and amortization)	130.9	116.5
Support and overhead costs	100.2	88.8
Total operating expenses	231.1	205.3
Other income	0	0
Equity in net income of nonconsolidated affiliates	(0.2)	(0.4)
Noncontrolling interests	0.9	2.7
Segment Adjusted EBITDA	41	46.3
Capital expenditures	$ 1.5	$ 4.5

Segment Reporting - Segment R_2

Segment Reporting - Segment Reporting Information, Total Assets and Investments In and Advances to Nonconsolidated Affiliates (Details) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	[1]	$ 6,137.7	$ 6,080.7
Investments in and advances to nonconsolidated affiliates		5.7	7.4
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets		6,198	6,114.2
Operating Segments | Inpatient Rehabilitation
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets		4,558.8	4,501.4
Investments in and advances to nonconsolidated affiliates		1.8	2
Operating Segments | Home Health and Hospice
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets		1,639.2	1,612.8
Investments in and advances to nonconsolidated affiliates		$ 3.9	$ 5.4
[1]	Our consolidated assets as of March 31, 2020 and December 31, 2019 include total assets of variable interest entities of $222.2 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $39.3 million and $41.1 million , respectively. See Note 2 , Variable Interest Entities .

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
General and administrative expenses	$ (35.6)	$ (53.4)
Depreciation and amortization	(58.8)	(52.5)
Government, class action, and related settlements	(2.8)	0
Net income attributable to noncontrolling interests	21.7	22.9
Income from continuing operations before income tax expense	135.9	156.5
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total Segment Adjusted EBITDA	256.5	276.3
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
General and administrative expenses	(35.6)	(53.4)
Depreciation and amortization	(58.8)	(52.5)
Loss on disposal of assets	(0.1)	(1.1)
Government, class action, and related settlements	(2.8)	0
Interest expense and amortization of debt discounts and fees	(43.2)	(37.2)
Net income attributable to noncontrolling interests	21.7	22.9
SARs mark-to-market impact on noncontrolling interests	0	0.8
Change in fair market value of equity securities	(2.5)	0.9
Gain on consolidation of Treasure Coast	2.2	0
Payroll taxes on SARs exercise	$ (1.5)	$ (0.2)

Segment Reporting - Reconcili_2

Segment Reporting - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2020	Dec. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	[1]	$ 6,137.7	$ 6,080.7
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets		6,198	6,114.2
Segment Reconciling Items
Segment Reporting, Asset Reconciling Item [Line Items]
Reclassification of noncurrent deferred income tax liabilities to net noncurrent deferred income tax assets		$ (60.3)	$ (33.5)
[1]	Our consolidated assets as of March 31, 2020 and December 31, 2019 include total assets of variable interest entities of $222.2 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $39.3 million and $41.1 million , respectively. See Note 2 , Variable Interest Entities .

Segment Reporting - Reconcili_3

Segment Reporting - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	$ 1,182	$ 1,124
Operating Segments | Inpatient Rehabilitation
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	909.2	870.1
Operating Segments | Inpatient Rehabilitation | Inpatient
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	890	847.6
Operating Segments | Inpatient Rehabilitation | Outpatient and other
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	19.2	22.5
Operating Segments | Home Health and Hospice
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	272.8	253.9
Operating Segments | Home Health and Hospice | Home health
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	224.8	219.5
Operating Segments | Home Health and Hospice | Hospice
Segment Reporting, Revenue Reconciling Item [Line Items]
Net operating revenues	$ 48	$ 34.4

Condensed Consolidating Finan_3

Condensed Consolidating Financial Information - Textuals (Details)	3 Months Ended
	Mar. 31, 2020	Feb. 29, 2020	Dec. 31, 2019
Condensed Financial Statements, Captions [Line Items]
Encompass Health ownership percentage of subsidiary guarantors (percent)	100.00%
Senior secured leverage ratio maximum	2
Consolidated coverage ratio minimum	2
Holdings
Condensed Financial Statements, Captions [Line Items]
Remaining noncontrolling interest		1.20%	5.50%

Condensed Consolidating Finan_4

Condensed Consolidating Financial Information - Comprehensive Income Statement (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidating Statements of Operations
Net operating revenues	$ 1,182	$ 1,124
Operating expenses:
Salaries and benefits	679.1	620.8
Other operating expenses	159.6	150.1
Occupancy costs	20.2	19.6
Supplies	45.7	40.1
General and administrative expenses	35.6	53.4
Depreciation and amortization	58.8	52.5
Government, class action, and related settlements	2.8	0
Total operating expenses	1,001.8	936.5
Interest expense and amortization of debt discounts and fees	43.2	37.2
Other expense (income)	1.9	(3.7)
Equity in net income of nonconsolidated affiliates	(0.8)	(2.5)
Equity in net income of consolidated affiliates	0	0
Management fees	0	0
Income from continuing operations before income tax expense	135.9	156.5
Provision for income tax (benefit) expense	27.1	30.8
Income from continuing operations	108.8	125.7
Loss from discontinued operations, net of tax	(0.1)	(0.5)
Net income	108.7	125.2
Comprehensive income	108.7	125.2
Less: Net income attributable to noncontrolling interests	(21.7)	(22.9)
Less: Comprehensive income attributable to noncontrolling interests	(21.7)	(22.9)
Net income attributable to Encompass Health	87	102.3
Comprehensive income attributable to Encompass Health	87	102.3
Reportable Legal Entities | Encompass Health Corporation
Condensed Consolidating Statements of Operations
Net operating revenues	4.6	5.1
Operating expenses:
Salaries and benefits	16.7	15.9
Other operating expenses	9.6	10.3
Occupancy costs	0.6	0.5
Supplies	0	0
General and administrative expenses	34.7	39.9
Depreciation and amortization	5.3	5
Government, class action, and related settlements	2.8
Total operating expenses	69.7	71.6
Interest expense and amortization of debt discounts and fees	35.8	30.1
Other expense (income)	(2.3)	(7.7)
Equity in net income of nonconsolidated affiliates	0	0
Equity in net income of consolidated affiliates	(122.2)	(130.2)
Management fees	(42)	(39.8)
Income from continuing operations before income tax expense	65.6	81.1
Provision for income tax (benefit) expense	(21.5)	(21.7)
Income from continuing operations	87.1	102.8
Loss from discontinued operations, net of tax	(0.1)	(0.5)
Net income	87	102.3
Comprehensive income	87	102.3
Less: Net income attributable to noncontrolling interests	0	0
Less: Comprehensive income attributable to noncontrolling interests	0	0
Net income attributable to Encompass Health	87	102.3
Comprehensive income attributable to Encompass Health	87	102.3
Reportable Legal Entities | Guarantor Subsidiaries
Condensed Consolidating Statements of Operations
Net operating revenues	622.5	606.5
Operating expenses:
Salaries and benefits	309.8	288.9
Other operating expenses	86.9	84.7
Occupancy costs	25.4	24.9
Supplies	26.5	24
General and administrative expenses	0	0
Depreciation and amortization	28.7	26.3
Government, class action, and related settlements	0
Total operating expenses	477.3	448.8
Interest expense and amortization of debt discounts and fees	6.3	6.2
Other expense (income)	(0.4)	(0.3)
Equity in net income of nonconsolidated affiliates	(0.5)	(2)
Equity in net income of consolidated affiliates	(17.8)	(17.1)
Management fees	30.2	29.5
Income from continuing operations before income tax expense	127.4	141.4
Provision for income tax (benefit) expense	33	37.8
Income from continuing operations	94.4	103.6
Loss from discontinued operations, net of tax	0	0
Net income	94.4	103.6
Comprehensive income	94.4	103.6
Less: Net income attributable to noncontrolling interests	0	0
Less: Comprehensive income attributable to noncontrolling interests	0	0
Net income attributable to Encompass Health	94.4	103.6
Comprehensive income attributable to Encompass Health	94.4	103.6
Reportable Legal Entities | Non-guarantor Subsidiaries
Condensed Consolidating Statements of Operations
Net operating revenues	323.3	296.5
Operating expenses:
Salaries and benefits	164.2	148
Other operating expenses	52	46.8
Occupancy costs	6.7	6.5
Supplies	13.2	11.6
General and administrative expenses	0	0
Depreciation and amortization	15	13.1
Government, class action, and related settlements	0
Total operating expenses	251.1	226
Interest expense and amortization of debt discounts and fees	1.4	1.3
Other expense (income)	1.6	(2.5)
Equity in net income of nonconsolidated affiliates	(0.1)	(0.1)
Equity in net income of consolidated affiliates	0	0
Management fees	11.8	10.3
Income from continuing operations before income tax expense	57.5	61.5
Provision for income tax (benefit) expense	9.1	10.2
Income from continuing operations	48.4	51.3
Loss from discontinued operations, net of tax	0	0
Net income	48.4	51.3
Comprehensive income	48.4	51.3
Less: Net income attributable to noncontrolling interests	(21.2)	(21.2)
Less: Comprehensive income attributable to noncontrolling interests	(21.2)	(21.2)
Net income attributable to Encompass Health	27.2	30.1
Comprehensive income attributable to Encompass Health	27.2	30.1
Reportable Legal Entities | Holdings
Condensed Consolidating Statements of Operations
Net operating revenues	266.8	249.5
Operating expenses:
Salaries and benefits	193.3	173.1
Other operating expenses	24.1	20.8
Occupancy costs	4.8	3.7
Supplies	6	4.5
General and administrative expenses	0.9	13.5
Depreciation and amortization	9.8	8.1
Government, class action, and related settlements	0
Total operating expenses	238.9	223.7
Interest expense and amortization of debt discounts and fees	4.9	6.4
Other expense (income)	(2.2)	0
Equity in net income of nonconsolidated affiliates	(0.2)	(0.4)
Equity in net income of consolidated affiliates	0	0
Management fees	0	0
Income from continuing operations before income tax expense	25.4	19.8
Provision for income tax (benefit) expense	6.5	4.5
Income from continuing operations	18.9	15.3
Loss from discontinued operations, net of tax	0	0
Net income	18.9	15.3
Comprehensive income	18.9	15.3
Less: Net income attributable to noncontrolling interests	(0.5)	(1.7)
Less: Comprehensive income attributable to noncontrolling interests	(0.5)	(1.7)
Net income attributable to Encompass Health	18.4	13.6
Comprehensive income attributable to Encompass Health	18.4	13.6
Eliminating Entries
Condensed Consolidating Statements of Operations
Net operating revenues	(35.2)	(33.6)
Operating expenses:
Salaries and benefits	(4.9)	(5.1)
Other operating expenses	(13)	(12.5)
Occupancy costs	(17.3)	(16)
Supplies	0	0
General and administrative expenses	0	0
Depreciation and amortization	0	0
Government, class action, and related settlements	0
Total operating expenses	(35.2)	(33.6)
Interest expense and amortization of debt discounts and fees	(5.2)	(6.8)
Other expense (income)	5.2	6.8
Equity in net income of nonconsolidated affiliates	0	0
Equity in net income of consolidated affiliates	140	147.3
Management fees	0	0
Income from continuing operations before income tax expense	(140)	(147.3)
Provision for income tax (benefit) expense	0	0
Income from continuing operations	(140)	(147.3)
Loss from discontinued operations, net of tax	0	0
Net income	(140)	(147.3)
Comprehensive income	(140)	(147.3)
Less: Net income attributable to noncontrolling interests	0	0
Less: Comprehensive income attributable to noncontrolling interests	0	0
Net income attributable to Encompass Health	(140)	(147.3)
Comprehensive income attributable to Encompass Health	$ (140)	$ (147.3)

Condensed Consolidating Finan_5

Condensed Consolidating Financial Information - Balance Sheet (Details) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents		$ 104.9	$ 94.8	$ 56.1	$ 69.2
Restricted cash		56.7	57.4	59	59
Accounts receivable		543.4	506.1
Other current assets		79.5	97.5
Total current assets		784.5	755.8
Property and equipment, net		2,003.3	1,959.3
Operating lease right-of-use assets		267.9	276.5
Goodwill		2,312.1	2,305.2
Intangible assets, net		464.7	476.3
Deferred income tax assets		1.5	2.9
Other long-term assets		303.7	304.7
Intercompany notes receivable			0
Intercompany receivable and investments in consolidated affiliates		0	0
Total assets	[1]	6,137.7	6,080.7
Current liabilities:
Current portion of long-term debt		40.2	39.3
Current operating lease liabilities		40.8	40.4
Accounts payable		98	94.6
Accrued expenses and other current liabilities		407.2	546.7
Total current liabilities		586.2	721
Long-term debt, net of current portion		3,321.9	3,023.3
Long-term operating lease liabilities		235.1	243.8
Intercompany notes payable			0
Other long-term liabilities		163.3	159.9
Intercompany payable		0	0
Total liabilities		4,306.5	4,148
Commitments and contingencies
Redeemable noncontrolling interests		34	239.6
Shareholders’ equity:
Encompass Health shareholders’ equity		1,443.9	1,352.2
Noncontrolling interests		353.3	340.9
Total shareholders’ equity		1,797.2	1,693.1	1,616.5	1,557
Total liabilities and shareholders' equity	[1]	6,137.7	6,080.7
Reportable Legal Entities | Encompass Health Corporation
Current assets:
Cash and cash equivalents		79	53.7	34.7	41.5
Restricted cash		0	0	0	0
Accounts receivable		0	0
Other current assets		79.8	64.3
Total current assets		158.8	118
Property and equipment, net		138.5	133.4
Operating lease right-of-use assets		9.7	10.1
Goodwill		0	0
Intangible assets, net		15.8	17.7
Deferred income tax assets		52.6	27.2
Other long-term assets		51.7	53.6
Intercompany notes receivable			737.8
Intercompany receivable and investments in consolidated affiliates		4,245.7	3,155.4
Total assets		4,672.8	4,253.2
Current liabilities:
Current portion of long-term debt		17	17
Current operating lease liabilities		1.4	1.3
Accounts payable		12.5	9.8
Accrued expenses and other current liabilities		171.5	147.4
Total current liabilities		202.4	175.5
Long-term debt, net of current portion		2,973	2,670.6
Long-term operating lease liabilities		8.6	9
Intercompany notes payable			0
Other long-term liabilities		44.9	45.9
Intercompany payable		0	0
Total liabilities		3,228.9	2,901
Commitments and contingencies
Redeemable noncontrolling interests		0	0
Shareholders’ equity:
Encompass Health shareholders’ equity		1,443.9	1,352.2
Noncontrolling interests		0	0
Total shareholders’ equity		1,443.9	1,352.2
Total liabilities and shareholders' equity		4,672.8	4,253.2
Reportable Legal Entities | Guarantor Subsidiaries
Current assets:
Cash and cash equivalents		3.7	5.2	3.5	3
Restricted cash		0	0	0	0
Accounts receivable		270.8	280.4
Other current assets		34.7	35.4
Total current assets		309.2	321
Property and equipment, net		1,268	1,246
Operating lease right-of-use assets		158	171.5
Goodwill		912.2	912.2
Intangible assets, net		98.9	101.7
Deferred income tax assets		11.1	11.1
Other long-term assets		86.8	85.4
Intercompany notes receivable			0
Intercompany receivable and investments in consolidated affiliates		657.6	523.6
Total assets		3,501.8	3,372.5
Current liabilities:
Current portion of long-term debt		10.8	10.4
Current operating lease liabilities		19.2	21.9
Accounts payable		57.2	56.5
Accrued expenses and other current liabilities		110.4	108.7
Total current liabilities		197.6	197.5
Long-term debt, net of current portion		302.5	305.4
Long-term operating lease liabilities		143.5	153.9
Intercompany notes payable			0
Other long-term liabilities		12	12.2
Intercompany payable		0	0
Total liabilities		655.6	669
Commitments and contingencies
Redeemable noncontrolling interests		0	0
Shareholders’ equity:
Encompass Health shareholders’ equity		2,846.2	2,703.5
Noncontrolling interests		0	0
Total shareholders’ equity		2,846.2	2,703.5
Total liabilities and shareholders' equity		3,501.8	3,372.5
Reportable Legal Entities | Non-guarantor Subsidiaries
Current assets:
Cash and cash equivalents		7.8	6	5.8	5.1
Restricted cash		56.7	57.4	59	59
Accounts receivable		131.6	125.6
Other current assets		45.1	9.3
Total current assets		241.2	198.3
Property and equipment, net		567.4	551.2
Operating lease right-of-use assets		80.1	86.5
Goodwill		329	323
Intangible assets, net		64.8	65.3
Deferred income tax assets		0.1	0.1
Other long-term assets		152.9	151.6
Intercompany notes receivable			0
Intercompany receivable and investments in consolidated affiliates		0	0
Total assets		1,435.5	1,376
Current liabilities:
Current portion of long-term debt		3.9	3.8
Current operating lease liabilities		14.2	16
Accounts payable		25	24.3
Accrued expenses and other current liabilities		134	109.2
Total current liabilities		177.1	153.3
Long-term debt, net of current portion		40.6	41.6
Long-term operating lease liabilities		69.1	73.6
Intercompany notes payable			0
Other long-term liabilities		105	100.3
Intercompany payable		66	66
Total liabilities		457.8	434.8
Commitments and contingencies
Redeemable noncontrolling interests		34	31.4
Shareholders’ equity:
Encompass Health shareholders’ equity		590.4	568.9
Noncontrolling interests		353.3	340.9
Total shareholders’ equity		943.7	909.8
Total liabilities and shareholders' equity		1,435.5	1,376
Reportable Legal Entities | Holdings
Current assets:
Cash and cash equivalents		14.4	29.9	12.1	19.6
Restricted cash		0	0	0	0
Accounts receivable		141	100.1
Other current assets		7.2	7.8
Total current assets		162.6	137.8
Property and equipment, net		29.4	28.7
Operating lease right-of-use assets		43.2	43.7
Goodwill		1,070.9	1,070
Intangible assets, net		285.2	291.6
Deferred income tax assets		0	0
Other long-term assets		12.3	14.1
Intercompany notes receivable			0
Intercompany receivable and investments in consolidated affiliates		7.5	0
Total assets		1,611.1	1,585.9
Current liabilities:
Current portion of long-term debt		8.5	8.1
Current operating lease liabilities		13.6	12.1
Accounts payable		3.3	4
Accrued expenses and other current liabilities		78.6	200.7
Total current liabilities		104	224.9
Long-term debt, net of current portion		5.8	5.7
Long-term operating lease liabilities		29.6	31.9
Intercompany notes payable			737.8
Other long-term liabilities		63.6	37
Intercompany payable		0	4.4
Total liabilities		203	1,041.7
Commitments and contingencies
Redeemable noncontrolling interests		0	208.2
Shareholders’ equity:
Encompass Health shareholders’ equity		1,408.1	336
Noncontrolling interests		0	0
Total shareholders’ equity		1,408.1	336
Total liabilities and shareholders' equity		1,611.1	1,585.9
Eliminating Entries
Current assets:
Cash and cash equivalents		0	0	0	0
Restricted cash		0	0	$ 0	$ 0
Accounts receivable		0	0
Other current assets		(87.3)	(19.3)
Total current assets		(87.3)	(19.3)
Property and equipment, net		0	0
Operating lease right-of-use assets		(23.1)	(35.3)
Goodwill		0	0
Intangible assets, net		0	0
Deferred income tax assets		(62.3)	(35.5)
Other long-term assets		0	0
Intercompany notes receivable			(737.8)
Intercompany receivable and investments in consolidated affiliates		(4,910.8)	(3,679)
Total assets		(5,083.5)	(4,506.9)
Current liabilities:
Current portion of long-term debt		0	0
Current operating lease liabilities		(7.6)	(10.9)
Accounts payable		0	0
Accrued expenses and other current liabilities		(87.3)	(19.3)
Total current liabilities		(94.9)	(30.2)
Long-term debt, net of current portion		0	0
Long-term operating lease liabilities		(15.7)	(24.6)
Intercompany notes payable			(737.8)
Other long-term liabilities		(62.2)	(35.5)
Intercompany payable		(66)	(70.4)
Total liabilities		(238.8)	(898.5)
Commitments and contingencies
Redeemable noncontrolling interests		0	0
Shareholders’ equity:
Encompass Health shareholders’ equity		(4,844.7)	(3,608.4)
Noncontrolling interests		0	0
Total shareholders’ equity		(4,844.7)	(3,608.4)
Total liabilities and shareholders' equity		$ (5,083.5)	$ (4,506.9)
[1]	Our consolidated assets as of March 31, 2020 and December 31, 2019 include total assets of variable interest entities of $222.2 million and $215.0 million , respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of March 31, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $39.3 million and $41.1 million , respectively. See Note 2 , Variable Interest Entities .

Condensed Consolidating Finan_6

Condensed Consolidating Financial Information - Cash Flow Statement (Details) - USD ($) $ in Millions	Feb. 18, 2020	Feb. 21, 2018	Sep. 30, 2019	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities				$ 29.3	$ 159.9
Cash flows from investing activities:
Purchases of property and equipment				(83.5)	(72.3)
Acquisitions of businesses, net of cash acquired				(1.1)	(13.7)
Funding of intercompany note receivable				0	0
Proceeds from repayment of intercompany note receivable					0
Other, net				1.6	(5.5)
Net cash used in investing activities				(83)	(91.5)
Cash flows from financing activities:
Principal borrowings on intercompany note payable					0
Principal borrowings on intercompany note payable				0
Principal payments on intercompany note payable					0
Borrowings on revolving credit facility				330	25
Payments on revolving credit facility				(25)	(30)
Dividends paid on common stock				(29)	(28.3)
Purchase of equity interests in consolidated affiliates	$ (162)	$ (65)	$ (163)	(162.3)	0
Distributions paid to noncontrolling interests of consolidated affiliates				(19.1)	(19.5)
Taxes paid on behalf of employees for shares withheld				(15.6)	(15.9)
Other, net				(7.9)	(13)
Change in intercompany advances				0	0
Net cash provided by (used in) financing activities				71.1	(81.7)
Increase (decrease) in cash, cash equivalents, and restricted cash				17.4	(13.3)
Cash, cash equivalents, and restricted cash at beginning of period				159.6	133.5
Cash, cash equivalents, and restricted cash at end of period				177	120.2
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period				94.8	69.2
Restricted cash at beginning of period				57.4	59
Restricted cash included in other long-term assets at beginning of period				7.4	5.3
Cash, cash equivalents, and restricted cash at beginning of period				159.6	133.5
Cash and cash equivalents at end of period				104.9	56.1
Restricted cash at end of period				56.7	59
Restricted cash included in other long-term assets at end of period				15.4	5.1
Cash, cash equivalents, and restricted cash at end of period				177	120.2
Supplemental schedule of noncash financing activity:
Capital contribution of intercompany note				0
Encompass Health Corporation
Cash flows from financing activities:
Principal borrowings on intercompany note payable					0
Guarantor Subsidiaries
Cash flows from financing activities:
Principal borrowings on intercompany note payable					0
Reportable Legal Entities | Encompass Health Corporation
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities				(31.2)	18.6
Cash flows from investing activities:
Purchases of property and equipment				(9.3)	(6.8)
Acquisitions of businesses, net of cash acquired				0	0
Funding of intercompany note receivable				(15)	(8)
Proceeds from repayment of intercompany note receivable					5
Other, net				(2.8)	(4)
Net cash used in investing activities				(27.1)	(13.8)
Cash flows from financing activities:
Principal borrowings on intercompany note payable				0
Principal payments on intercompany note payable					0
Borrowings on revolving credit facility				330	25
Payments on revolving credit facility				(25)	(30)
Dividends paid on common stock				(28.9)	(28.2)
Purchase of equity interests in consolidated affiliates				(162.3)
Distributions paid to noncontrolling interests of consolidated affiliates				0	0
Taxes paid on behalf of employees for shares withheld				(14.6)	(14.7)
Other, net				(8.5)	(14.7)
Change in intercompany advances				(7.1)	51
Net cash provided by (used in) financing activities				83.6	(11.6)
Increase (decrease) in cash, cash equivalents, and restricted cash				25.3	(6.8)
Cash, cash equivalents, and restricted cash at beginning of period				53.7	41.5
Cash, cash equivalents, and restricted cash at end of period				79	34.7
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period				53.7	41.5
Restricted cash at beginning of period				0	0
Restricted cash included in other long-term assets at beginning of period				0	0
Cash, cash equivalents, and restricted cash at beginning of period				53.7	41.5
Cash and cash equivalents at end of period				79	34.7
Restricted cash at end of period				0	0
Restricted cash included in other long-term assets at end of period				0	0
Cash, cash equivalents, and restricted cash at end of period				79	34.7
Supplemental schedule of noncash financing activity:
Capital contribution of intercompany note				853
Reportable Legal Entities | Guarantor Subsidiaries
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities				117.7	89.6
Cash flows from investing activities:
Purchases of property and equipment				(49.5)	(32.5)
Acquisitions of businesses, net of cash acquired				0	0
Funding of intercompany note receivable				0
Proceeds from repayment of intercompany note receivable					0
Other, net				0.7	(0.1)
Net cash used in investing activities				(48.8)	(32.6)
Cash flows from financing activities:
Principal borrowings on intercompany note payable				0
Principal payments on intercompany note payable					0
Borrowings on revolving credit facility				0	0
Payments on revolving credit facility				0	0
Dividends paid on common stock				0	0
Purchase of equity interests in consolidated affiliates				0
Distributions paid to noncontrolling interests of consolidated affiliates				0	0
Taxes paid on behalf of employees for shares withheld				0	0
Other, net				(2.5)	(2.1)
Change in intercompany advances				(67.9)	(54.4)
Net cash provided by (used in) financing activities				(70.4)	(56.5)
Increase (decrease) in cash, cash equivalents, and restricted cash				(1.5)	0.5
Cash, cash equivalents, and restricted cash at beginning of period				5.2	3
Cash, cash equivalents, and restricted cash at end of period				3.7	3.5
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period				5.2	3
Restricted cash at beginning of period				0	0
Restricted cash included in other long-term assets at beginning of period				0	0
Cash, cash equivalents, and restricted cash at beginning of period				5.2	3
Cash and cash equivalents at end of period				3.7	3.5
Restricted cash at end of period				0	0
Restricted cash included in other long-term assets at end of period				0	0
Cash, cash equivalents, and restricted cash at end of period				3.7	3.5
Supplemental schedule of noncash financing activity:
Capital contribution of intercompany note				0
Reportable Legal Entities | Non-guarantor Subsidiaries
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities				56.8	42.4
Cash flows from investing activities:
Purchases of property and equipment				(23.4)	(29.4)
Acquisitions of businesses, net of cash acquired				0	0
Funding of intercompany note receivable				0	0
Proceeds from repayment of intercompany note receivable					0
Other, net				3.9	(0.7)
Net cash used in investing activities				(19.5)	(30.1)
Cash flows from financing activities:
Principal borrowings on intercompany note payable					0
Principal borrowings on intercompany note payable				0
Principal payments on intercompany note payable					0
Borrowings on revolving credit facility				0	0
Payments on revolving credit facility				0	0
Dividends paid on common stock				0
Purchase of equity interests in consolidated affiliates				0
Distributions paid to noncontrolling interests of consolidated affiliates				(19.1)	(19.5)
Taxes paid on behalf of employees for shares withheld				0	0
Other, net				5	5.6
Change in intercompany advances				(14.1)	2.1
Net cash provided by (used in) financing activities				(28.2)	(11.8)
Increase (decrease) in cash, cash equivalents, and restricted cash				9.1	0.5
Cash, cash equivalents, and restricted cash at beginning of period				70.8	69.4
Cash, cash equivalents, and restricted cash at end of period				79.9	69.9
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period				6	5.1
Restricted cash at beginning of period				57.4	59
Restricted cash included in other long-term assets at beginning of period				7.4	5.3
Cash, cash equivalents, and restricted cash at beginning of period				70.8	69.4
Cash and cash equivalents at end of period				7.8	5.8
Restricted cash at end of period				56.7	59
Restricted cash included in other long-term assets at end of period				15.4	5.1
Cash, cash equivalents, and restricted cash at end of period				79.9	69.9
Supplemental schedule of noncash financing activity:
Capital contribution of intercompany note				0
Reportable Legal Entities | Holdings
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities				(114)	9.3
Cash flows from investing activities:
Purchases of property and equipment				(1.3)	(3.6)
Acquisitions of businesses, net of cash acquired				(1.1)	(13.7)
Funding of intercompany note receivable				0	0
Proceeds from repayment of intercompany note receivable					0
Other, net				(0.2)	(0.7)
Net cash used in investing activities				(2.6)	(18)
Cash flows from financing activities:
Principal borrowings on intercompany note payable					8
Principal borrowings on intercompany note payable				15
Principal payments on intercompany note payable					(5)
Borrowings on revolving credit facility				0	0
Payments on revolving credit facility				0	0
Dividends paid on common stock				(0.1)	(0.1)
Purchase of equity interests in consolidated affiliates				0
Distributions paid to noncontrolling interests of consolidated affiliates				0	0
Taxes paid on behalf of employees for shares withheld				(1)	(1.2)
Other, net				(1.9)	(1.8)
Change in intercompany advances				89.1	1.3
Net cash provided by (used in) financing activities				101.1	1.2
Increase (decrease) in cash, cash equivalents, and restricted cash				(15.5)	(7.5)
Cash, cash equivalents, and restricted cash at beginning of period				29.9	19.6
Cash, cash equivalents, and restricted cash at end of period				14.4	12.1
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period				29.9	19.6
Restricted cash at beginning of period				0	0
Restricted cash included in other long-term assets at beginning of period				0	0
Cash, cash equivalents, and restricted cash at beginning of period				29.9	19.6
Cash and cash equivalents at end of period				14.4	12.1
Restricted cash at end of period				0	0
Restricted cash included in other long-term assets at end of period				0	0
Cash, cash equivalents, and restricted cash at end of period				14.4	12.1
Supplemental schedule of noncash financing activity:
Capital contribution of intercompany note				(853)
Eliminating Entries
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities				0	0
Cash flows from investing activities:
Purchases of property and equipment				0	0
Acquisitions of businesses, net of cash acquired				0	0
Funding of intercompany note receivable				15	8
Proceeds from repayment of intercompany note receivable					(5)
Other, net				0	0
Net cash used in investing activities				15	3
Cash flows from financing activities:
Principal borrowings on intercompany note payable					(8)
Principal borrowings on intercompany note payable				(15)
Principal payments on intercompany note payable					5
Borrowings on revolving credit facility				0	0
Payments on revolving credit facility				0	0
Dividends paid on common stock				0	0
Purchase of equity interests in consolidated affiliates				0
Distributions paid to noncontrolling interests of consolidated affiliates				0	0
Taxes paid on behalf of employees for shares withheld				0	0
Other, net				0	0
Change in intercompany advances				0	0
Net cash provided by (used in) financing activities				(15)	(3)
Increase (decrease) in cash, cash equivalents, and restricted cash				0	0
Cash, cash equivalents, and restricted cash at beginning of period				0	0
Cash, cash equivalents, and restricted cash at end of period				0	0
Reconciliation of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents at beginning of period				0	0
Restricted cash at beginning of period				0	0
Restricted cash included in other long-term assets at beginning of period				0	0
Cash, cash equivalents, and restricted cash at beginning of period				0	0
Cash and cash equivalents at end of period				0	0
Restricted cash at end of period				0	0
Restricted cash included in other long-term assets at end of period				0	0
Cash, cash equivalents, and restricted cash at end of period				0	$ 0
Supplemental schedule of noncash financing activity:
Capital contribution of intercompany note				$ 0